The prospect of long-term employment in the same occupation for new labor market entrants is more remote than ever before. Labor market entrants now need a combination of different hard and soft skills honed on a continuous basis to meet market demand.
At the same time, new technologies and big data offer an opportunity to forecast labor market trends with an accuracy that was not conceivable a decade ago. Armed with the right policies, governments can use these forecasts to narrow skills gaps and boost all forms of employment.
In order to stimulate employment in a rapidly evolving world of work, Whiteshield Partners created a job creation index combined with a four steps approach :
- Conduct snapshot of the labor market: the labor market is segmented by age, education, gender, contract type, type of occupation etc. The gap is assessed between demand and supply by occupation.
- Assess historical evolution: the same variables are then applied to follow the historical evolution of the labor market over a minimum of 20 years. The historical evolution is also used to pinpoint the drivers and barriers to the growth of employment and the evolution of skills gaps.
- Forecast future trends: Whiteshield forecasts future labor market trends using a combination of historical extrapolation with big data trends from online jobs data.
- Link to policy: policy measures involve a mix of active measures to support labor market integration (e.g. vocational training, adult learning) and market enabling measures to ease entry and exit of the labor market (e.g. contract type, tax wedge)
Whiteshield Partners’ approach to labor market forecasting leverages the most recent digital tools to reach a high level of accuracy including actuarial modelling.
To be successful in generating impact with these tools, it is fundamental to have the right institutions in place such as a “Jobs Council”, to leverage public-private partnership for skills development, and allocate the right level of funding to worker training.
- “Jobs Council”: is cross ministerial unit involving at a minimum the Ministry of Economy, Labor, Education and Industry. The role of the Jobs Council is to review job market trends on a systematic basis and make binding policy recommendations that reconcile factors of divergence.
- Public-private partnerships (PPPs): PPPs for skills development are joint programmes between public authorities and companies in a specific sector to train workers with skills that are timely and relevant for the private sector.
- Funding: given the rapidly evolving labor markets, budget allocation to employment support must place a specific emphasis on quality training, including in PPPs for skills.
In order to effectively support employment for the workers of tomorrow government needs to keep up with the pace of digital technologies and use all the tools at its disposal.