On March 7th 2017 I presented my team's research on the disconnect of growth and employment, discussing data on unemployment, labour demands and skills mismatch. I also highlighted key policy considerations regarding these issues.
2. Outline
o Current snapshot of the world of work
o Emerging transformations which could exacerbate
these developments
o Policy questions and considerations
3. 16.6% or +5.5 million
8.7% or +33.2
million
9.4% or +38.7 million
0
2
4
6
8
10
12
14
16
18
Unemployed Inactive Total people out employment
The number of jobless people is mounting
Growth of unemployed and inactive people in developed countries, (% 2007-2016)
Source: ILO’s Trends Econometric Model, November 2016
4. Labour demand remains virtually stagnant
Employers hiring expectation, Q4 2016 (% of respondents)
Note: Figures refer to average values across 43 developed and emerging countries
Source: Manpower group, Hiring Uncertainty Index
5. Yet, employers report shortages
Employers reporting difficulty in filling positions, (% of respondents)
Source: Manpower Group, Talent Shortage Survey, various editions.
6. Are education systems and labour markets
misaligned?
Incidence of under- over-education in Europe, (% of total workers)
Note: Figure shows the average incidence of under- over-qualification across 25 European countries
Source: ILO Skill Mismatch in Europe, Statistics Brief, 2014
7. Unemployment persists across levels of education
Unemployment rate by level of education, average across 45 countries (%)
Note: Figures report the average unemployment rate by educational level across 45 developed and emerging countries
Source: ILO Statistics
8. Adding pressure on people’s intention to migrate
Average willingness to migrate abroad permanently (per cent population aged 15+)
Source: ILO’s calculations based on Gallup Analytics, 2016
9. Is the employment content of growth slowing?
Employment elasticity to GDP growth in high-income countries
Source: ILO’s Trends Econometric Model, November 2016
10. Is skill content polarizing?
Change in the occupational employment share in developed countries, (pp)
Source: ILO’s Trends Econometric Model, November 2016
11. Erosion of classical employee-employer
relationship?
o Rise of telework and ICT-mobile work: greater work autonomy
but higher levels of intensity and stress (ILO-Eurofound, 2017)
o Growth of on-line labour/ gig-economy: especially in jobs
related to software development and multimedia (Online
Labour Index, 2017)
o Lower barriers to entrepreneurship: e-firms, e-commerce
o Role of GVC – labor-intensive tasks allocated in emerging
economies while cognitive tasks remain in or are reshored to
advanced countries.
12. Job dissatisfaction is widespread
Share of respondents who think people cannot get ahead by working hard, (percentages)
Note: Survey respondents were asked: “Can people get ahead in this country by working hard or not?”. The chart displays the percentage of
respondents who said “no”.
Source: ILO calculations based on Gallup World Poll.
13. Key questions
o Will there be enough jobs for everyone?
o How to address skill levels vs skill content?
o Mismatch of expectations?
o What complementary industrial policies are needed?
o Who should paid for training?
o Role of education system?
o How to support individuals?
14. Policy considerations
o Strengthen labour market information
o Effective public employment services
o What we train and how train
o Facilitating school to work transitions
15. o Boost support to ALMPs :
Ensuring the continuous upgrade of workers’ skills
Improving the quality of the matching between workers and
employers
Promoting productive employment creation
o Engage social partners and others in the design and
monitoring of training schemes
o Social protection systems must evolve beyond the
standard employment model
Policy considerations (con’t)
201 million unemployed globally
38 million or so in developed or high-income countries
The number of unemployed people in Greece increased by 730 thousands (+173%) between 2007 and 2016.
Over the same period, the number of inactive .people rose by 41 thousand (+0.9%).
In 2016, the UR was estimated at 23.9%.
In Greece, 67% of the employers foresee no change in the workforce, 15% an increase and 15% a decrease.
The share of interviewed employers that reported difficulties in filling the position in Greece was at 59% in 2016.
Under- Over-education are measured using a pre-determined mapping between the job and the required education level. This measurement starts from the division of major occupational groups (first-digit ISCO levels) into three groups and assigns a level of education to each group in accordance with the International Standard Classification of Education (ISCED-97). An advantage of the normative measure is that workers in a given occupation and with a given level of education are consistently categorized over time as undereducated, overeducated or well-matched. A possible disadvantage of this measure is that it does
not take the actual distribution of educational attainment into account. In high attainment countries, workers in all jobs are better educated and all other things equal the proportion of overeducated is therefore likely to be higher as well.
Employment elasticity is computed as the ratio between the percentage change in the number of employed persons in an economy or region associated with a percentage
change in economic output, measured by gross domestic product.