The role of training and skills development in active labour market policies

Abstract

There is persistent evidence over several decades that the UK lags behind its international competitors in terms of the skills and qualifications of its workforce, with a detrimental impact on overall economic performance. The most recent attempt by the UK government to address this includes a new strategy aimed at increasing the degree of integration between skills policy and employment policy in the UK. In light of this development, this review paper considers the extensive international evidence on the role and effectiveness of training and skills interventions, as part of a broader portfolio of active labour market policies. The review concludes that while large-scale, 'broad brush' schemes have little impact as part of such a portfolio, more targeted programmes addressing specific skill needs may have some impact on employment chances of workless groups.

Protection and Training Institutions for Improving Workforce Integration in Latin America and Asia

“…Some of them compare the outcome of the training with the outcome from other instruments of active labour market policies, such as programmes for direct or indirect job creation, employment services (intermediation) and the promotion of self-employment and micro-enterprises. Over time, countries have cut back funding for training in favour of support for job-seekers, advice and guidance, and incentives or penalties (Meager, 2009).…”

“…• It would seem that on-the-job training and classroom training accompanied by real-life workplace experience are the most effective forms, thanks to their initial assessment ("screening"), competition and transition effects (described in part 6 of this section) (Brown and Koettl, 2012;Kluve, 2010;Betcherman, Dar and Olivas, 2004;Greenberg, Michalopoulos and Robins, 2003;Meager, 2009). …”

“…• Training will be more effective when it is targeted at certain skills and occupations that are in demand on the labour market, as well as at developing analytical skills (Meager, 2009;Bednarzik and Szalanski, 2012). According to Martin and Grubb (2001), the most effective training programmes are those geared to specific groups for which skills deficiencies are a barrier to employment (Meager, 2009).…”

Strengthening Skill use and School-to-work Transitions in the Czech Republic

“…Research shows that favouring an intensive approach, with high cost per head, is more likely to succeed in bringing the unemployed back to the labour market than an extensive approach that covers a large share of the unemployed with low intensity (Martin and Grubb, 2001;Meager, 2009). Changes in the Employment Act in 2009, imposing detailed Individual Action Plans (IAP), have not surprisingly had little impact in raising employability, as an overly burdened staff in regional offices has reduced contact with each individual jobseeker, also as more time is spent in more bureaucratic activities such as the disbursement of social benefits, which became part of the responsibilities of regional employment offices in 2011 (Váňová, 2010).…”

“…The current pool of labour market activation projects could be reconsidered and rationalized by focusing on: i) clearly identified target groups; and ii) specific skill needs of both job seekers and employers, as international experience of training interventions shows that these are criteria for ALMPs to succeed in raising employment (Meager, 2009). In this respect, internships in companies should last long enough to allow the trainee to master fully the competencies learned.…”