Training initiatives Edinburgh

This article reviews the training projects and initiatives supported by Edinburgh District Council and draws conclusions from the successful track record of a number of the projects. These refer mainly to factors which contribute to the success of training for the long-term unemployed and therefore may be useful to anyone developing new training projects. Similarly, they may help those who are pondering how Employment Training may usefully develop.

Edinburgh District Council's support for training lies within its economic development function, as opposed to the Regional Council, where it lies with their education function. With this in mind, the District Council's criteria for supporting training have had to be plainly established. These are, that projects must be “exemplary, innovative, and catalytic”, and there must be no duplication of other provision. They should address specific needs amongst the unemployed, and must supply skills which are needed for the development of Edinburgh's economy.     

Employees who do not know their labour contract term and the implications for working conditions: Evidence from Japanese and Spanish microdata

In this paper, we analyse the relationship between employees who do not know the length of their labour contract (hereafter, DNK employees) and working conditions. In developed countries, labour standards regulations generally require employers to provide a labour contract with a clearly defined duration to protect the fundamental rights of workers. However, the data reveal that in the developed countries on which we focus, Japan and Spain, non-negligible proportions of employees, 8% and 11%, respectively, do not know the duration of their labour contracts. Utilizing 2012 data from the Employment Status Survey for Japan and the Economically Active Population Survey for Spain, we find that whether workers are ignorant of their contract term commonly depends on their human capital level. Women, single people, younger and older workers and less-educated workers are more likely not to know their labour contract duration. Compared with other employees, DNK employees are more dissatisfied with their current job, more likely to search for other jobs and less likely to seek more work in their current jobs. We find that DNK employees suffer from a wage penalty for non-standard status and have less access to job training, as occurs in Japan, and that specific attributes, such as immigrant status, tend to be closely related to DNK status, as occurs in Spain. Overall, DNK employment is related to poor working conditions, which indicates the importance of educating workers about labour laws to maintain the welfare of disadvantaged workers.     

Why Do Recent Graduates Enter into Flexible Jobs?

Flexible jobs make up a larger share of the Dutch labour market than in almost any other Western country. Recent graduates in the Netherlands are particularly likely to take flexible jobs. In this study we examine why recent graduates enter into temporary contracts and whether flexible jobs offer a poorer match for graduates’ qualifications than permanent jobs. We find that recent graduates that enter into flexible jobs face large wage penalties, a worse job match and less training participation than graduates who take permanent jobs, even after correcting for differences in ability. When the labour market situation for a particular field of education deteriorates, more recent graduates are forced into flexible jobs, threatening their position on the labour market in the long run. Flexible work among recent graduates is unrelated to their willingness to take risks. Only for university graduates is there any indication that flexible jobs may provide a stepping stone to permanent employment.     

Levels,trends and consistency of employment and unemployment figures in South Africa

This article appraises the similarities and dissimilarities between the major sources of information on the South African labour force, ie the CSS Employment Series, the Standardised Employment Series and recent household surveys. It concludes that the generally bleak picture of very high unemployment rates presented in the household surveys is broadly accurate. Further, race, gender and location are major determinants of labour‐force participation and employment. Finally, the article highlights the lack of work experience among the unemployed.     

Poverty,gender and migrancy: Lesotho's migrant farmworkers in South Africa

During the 1990s, eastern Free State vegetable farmers increasingly relied on migrants from neighbouring Lesotho for seasonal labour. This coincided with a major downsizing of the mine labour force in South Africa, hitherto the major employer of Basotho migrant workers. However, there was no simple process of transfer of unemployed migrants from the mining to the farming sector; rather, decisions were mediated by domestic relationships and household poverty in Lesotho. Basotho women and girls have been a major casualty of mine retrenchments and the drying up of remittances, and those with domestic skills but little formal training have been forced into the labour market, mainly domestic work in towns and labour on farms. This article examines the Basotho migrants' experiences and conditions of employment, the regulatory environment within which they are recruited and employed, and their future in the context of changing immigration and migration legislation in South Africa.     

Job Creation and Destruction in South Africa

Analysts of the South African labour market have mainly used household surveys to analyse the labour market. It has been more difficult to explore the labour demand of firms, as a result of limited data availability. We use the Quarterly Employment Statistics survey, an enterprise survey conducted by Statistics South Africa, to explore how South African firms create and destroy jobs, thereby shedding light on many of the policy questions that are relevant in a high unemployment society like South Africa. We find that job creation and destruction rates are similar to those found in Organisation for Economic Co‐operation and Development countries. There is little evidence that labour legislation creates rigidities that prevent firms from hiring or firing workers. We also find that larger firms are better net creators of jobs than small firms and that net job creation rates are negative in manufacturing. Our research has important policy implications – particularly for the South African National Planning Commission's 2030 plan, in which new jobs are envisaged to come mainly from small‐ and medium‐sized firms. Our research suggests that this scenario is not likely without changes to policy or legislation.     

The implications of South Africa's skills migration policy for country competitiveness

South Africa suffers from a shortage of skills, while at the same time having an excess of unskilled labour. The brain drain and the impact of HIV/Aids are threats to the current skills level in the labour force. Skilled workers generally create jobs for unskilled workers, and the level of skills in the labour force is an attraction for foreign investment. The new international migration policy imposes financial penalties and other restrictions on employers of foreigners with skills. The policy is detrimental to South Africa's competitiveness in the global economy and will deter investors and those needing to utilise skills not available in the South African labour market. A general immigration policy would be more appropriate to attract skilled foreigners to South Africa, where their skills can be absorbed into the labour force by supply and demand forces.     

Minimum Wages,On-the-Job Training,and Wage Growth

Using data from the Employment Opportunities Pilot Project, we examine the relationships between minimum wages, wage growth, and on-the-job training. We find that minimum wage jobs exhibit less wage growth than other jobs, particularly for men. We find no evidence, however, of a unique minimum wage effect on training opportunities. We conclude that indirect methods of proxying training with wage growth can be misleading as they fail to distinguish whether the reduced wage growth of workers on minimum wage jobs results from their receiving less training than other workers or whether it is strictly a result of the wage determination process.     

‘Fit to play’: Labour market behaviour in a cohort of public-sector antiretroviral treatment patients

Given the rapid scale-up of antiretroviral treatment (ART), it is necessary to explore the impact of ART on labour force participation, employment and labour productivity. This article investigates labour market outcomes in a prospective cohort of public-sector ART clients in the Free State province of South Africa. Empirical results suggest that labour force participation increased markedly as the proportion of those too ill to work declined, becoming indistinguishable from participation rates in the general population. Unemployment rates, however, remain above those reported for the general population. ART and its health-related benefits therefore translate into increases in labour force participation, but not employment. Employment status at HIV diagnosis strongly predicts absorption in the labour force. Public-sector ART clients should be referred to vocational rehabilitation and occupational therapy programmes, and to welfare-to-work programmes, and the unskilled to adult education and training and further education and training programmes.     

Are Older Workers Disadvantaged in the Hong Kong Labour Market?

Using data collected from two surveys on the labour market in Hong Kong, this paper shows that older workers on average are more likely to be unemployed than younger ones. Unemployed workers aged above 45 tend to face a longer spell of unempoyment, receive fewer job offers and expect lower future wages than the unemployed younger workers. Older employed workers may also be disadvantaged. This paper compares the promotion and training opportunities available to olderand younger employed workers. We found that older workers are less likely to bepromoted or selected for training.     

Reinterpreting the convict labour market

The convicts transported to NSW between 1817 and 1840 were young, fit, highly literate and brought occupational skills which were broadly representative of the British and Irish working classes. In the colonial labour market where convicts were coerced, more labour was forthcoming and at a lower wage than in a free labour market. The assignment of convict labour in the colony was efficient; skilled urban and construction tradesmen were employed in the same jobs in NSW as they had held in Britain. Domestic servants and unskilled urban workers whose skills were not suited to the needs of the colony experienced job restructuring. The organization of convict workers into teams and gangs in Australia was similar to the way work was organized in free labour Britain, and a mbc of incentives and rewards characterized the extraction of work from convicts. The human capital of the transportees and the labour system within which they worked help to explain the rapid growth of the colonial economy before 1840.     

South Africa's special employment programme of R600 million∗

In 1985 an amount of R6OO million was allocated for special employment projects. The most important ones were labour intensive projects by the public and private sectors, projects to support the small business sector, and the training of unemployed persons.

Various conditions were set for the programmes. Regarding the labour‐intensive projects for instance, a relatively small allowance was paid to the unemployed person in order to accommodate as many persons as possible, and to ensure the workers were not diverted from other employment opportunities. Furthermore, at least 50 per cent of the total funds allocated had to be for the wages of the unemployed persons. In terms of acceptability among both training institutions and the persons involved, the scheme for the training of unemployed persons was particularly successful.

Only a relatively small part of South Africa's unemployment problem can be addressed with a programme of this nature. Measures to address the structural unemployment problem remain first priority.     

Setting It Right: Employment Protection,Labour Reallocation and Productivity

This paper provides a critical review of the recent empirical evidence on the links between regulations affecting the hiring and firing of workers, labour reallocation and productivity growth. It also reviews how workers affected by labour mobility fare and discusses policy options to support them. The upshot is that stringent employment protection has a sizeable negative effect on labour market flows and, through this channel, hinders productivity growth. At the same time, the evidence also shows that while greater labour market reallocation benefits many workers through higher real wages and better careers, some displaced workers lose out via longer unemployment durations and/or lower real wages in post-displacement jobs. In this context, reforms of employment protection should be considered as part of a comprehensive package that also includes an adequate safety net for the unemployed and effective re-employment services.     

Skills audits - a framework for local economic development

Skill creation and utilisation are important to local economic development as they represent an area in which local authorities have a track record of intervention and some very real powers, through their ability to influence parts of the training infrastructure. There is, of course, no direct causal link between changes to the training system and local economic performance. Fine-tuning the training infrastructure to meet identified needs in the labour market must be recognised as a necessary not a sufficient condition for creating or retaining jobs.

In providing an organising framework for a skills audit we have emphasised the four dynamic elements of a local skills pool: utilised skills, under-utilised skills, and the depletion and replenishment of skills. From our initial run through of the framework several factors already emerge as important considerations -- the need to try to establish an age profile of skilled workers, the desirability of providing a .local technology profile and the need to foster and maintain responsiveness in the training system to changing skill needs. This latter aspect requires local initiatives to improve signalling between demand and supply for training.     

Helping Those With Mental Health Problems Access Open Employment - A Glasgow Case Study

Mental health problems are relatively common within the population. For some, the problems February be so severe that they have to give up paid work. However, there is evidence that, not only do the mentally ill have a strong desire to return to paid work but, such work can improve mental health. This paper looks at the varied ways that have evolved to help the mentally ill return to work. Drawing on research undertaken in Glasgow, it finds that mental health projects have developed in isolation from one another and from the wider local economic development network. It argues that a more effective service can be provided if there is improved networking between projects and if they concentrate upon interventions which make optimum use of their particular knowledge and skills. This would involve mental health projects providing the social and therapeutic aspects of support, whilst the economic development projects dealt with vocational training and labour market links.     

Labour-Market Developments at a Time of Heightened Uncertainty

These are testing times for labour-market policies in Indonesia. The country faces two major challenges in an unpredictable international and domestic environment: providing people with better, more secure jobs and raising productivity to help raise living standards and reduce poverty. Over the past several months, new global and domestic threats to economic growth have emerged and may hinder progress in jobs and productivity. In the longer term, the government is searching for new strategies to increase productivity, with a focus on supply-side investments in skills and training. In relation to events abroad, uncertainty has increased over the early initiatives taken by the new US president and his nationalist administration, such as the scuttling of the Trans-Pacific Partnership trade deal. At home, likely to be of some significance for economic policy are mass actions that were levelled against Jakarta’s governor but de facto also directed against the government. In the medium term, our assessment of the record of the Joko Widodo (Jokowi) government on the labour market is mixed. Over the past two years, growth has been slower than under the previous administration and hence job creation has also been muted. The experience of a handful of countries in Asia suggests that the government might have done more to stimulate economic growth and create jobs. The disappointing performance of manufacturing stands out. Yet inflation has fallen and the slide in the value of international trade—both exports and imports—has reversed in recent months. Improved fiscal management and a generally successful tax amnesty are other pluses. There was also an unexpected but considerable fall in unemployment in 2015–16, according to labour-force statistics. Some policies, such as the new approach to minimum wages, seem to have had beneficial effects for both business and the economy, and Indonesia has done well in some international rankings, such as the World Bank’s Ease of Doing Business index. However, the picture for the medium to longer term seems less bright for the labour market. There has been much talk about raising productivity by improving skills through government support for investment in training and apprenticeships, as well as by expanding vocational training along the lines of the German model. Expanding tourism is seen as one solution to the lack of employment for young secondary- and tertiary-educated jobseekers. But we have an impression of policy-making on the run; often, the argument for government intervention has not been made clearly enough. We argue that Indonesia still lacks a coherent, well-thought-out plan to increase jobs and productivity.     

Estimating the wage costs of inter- and intra- sectoral adjustment

Estimating the Wage Costs of Inter- and Intra-Sectoral Adjustment. — The proposition that labour market adjustments to intra-industry trade are less costly than adjustments to inter-industry trade is a widely-held belief amongst trade economists. If there are significant sector-specific skills, then this ‘smooth adjustment hypothesis’ seems intuitive. Direct evidence relating to this issue remains largely anecdotal. In this paper we estimate the returns to tenure within jobs, industries and occupations in order to predict the costs, in terms of wage losses, of moving jobs between and within sectors. We find no compelling evidence that wage costs of moving between industries are larger than the costs of moving within industries.     

Education,skill training,and lifelong learning in the era of technological revolution: a review

Rapid technological development makes skills depreciate faster than in the past while new technologies generate gaps in workers' skills and call for the acquisition of appropriate skills and lifelong learning. Proper skill mixes for future jobs include strong cognitive skills, basic information and communication technology, and analytical skills, as well as a range of non-cognitive skills such as creativity, problem-solving, critical thinking, and communication. Retraining and reskilling workers are also crucial, particularly as life expectancy increases. All these changes lead to a major rethinking of education and skill training throughout a person's life. This paper reviews the recent studies on human capital and skill formation in the era of rapid technological progress. Findings from these studies, particularly in labour economics, can shed light on new directions for lifelong education policies, for example (1) parental investment in pre-school learning is reflected in highly positive adult outcomes; (2) as far as education inputs are concerned, teacher quality is far more important than additional school resources; and (3) government workforce training programs are largely ineffective as compared to private training, which contribute significantly to worker productivity.     

Local Responses to Long-term Unemployment: Delivering Access to Employment in Edinburgh

This paper examines locally developed policy responses to long-term unemployment in the city of Edinburgh: a labour market characterised by relatively low-unemployment and generally high levels of demand. Drawing upon in-depth interviews with 115 long-term unemployed people residing in the city, the paper first analyses the complex combination of barriers to work faced by members of this client group. Two recent labour market initiatives, developed by the local authority in partnership with other public and third sector agencies and (in one case) major employers, are then discussed. It is suggested that this locally focused, partnership-based approach may provide a useful model for local policy responses to long-term unemployment, particularly in buoyant labour markets.     

THE EFFECT OF THE SOUTH AFRICAN OLD AGE PENSION ON LABOUR SUPPLY OF THE ELDERLY

In this paper, we estimate the effect of the means tested South African Old Age Pension on labour supply amongst the elderly African subpopulation in South Africa. We find significant decreases in employment rates and labour supply. Those who remain employed beyond the pensionable age are more likely to work in jobs with flexible hours of work, and work even fewer hours than people in similar jobs who are not pension age‐eligible. Our results suggest that governments do need to consider the labour supply related incentives provided via its various welfare programmes.