The role of p ublic e mployment - PowerPoint Presentation

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The role of public employment services in facilitating employment in times of the crisis: political aspects

Yury

Gertsiy

,

ILO expert

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Employment service is a key tool in tackling structural challenges in the labour market. Public Employment Services (PES

)

emerged in industrially developed countries at the end of XIX century as a response to social and economic impacts of unemployment. Today, PES operate in a rapidly changing labor market. Strong demographic factors contribute to an aging workforce in developed countries whereas an ongoing population growth in most developing countries produces youth unemployment.     The essence of PES activities is that, on the one hand, these services increase the transparency of the labor market, and on the other hand, support those who would otherwise be deprived of the labor market opportunities.

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Public employment services can perform four main functions:•

mediation in

job placement;• provision of information about the labour market;• implementation of labour market ajustment programmes;• management of unemployment benefits. Key and mandatory provisions for PES

:

• PES should be ready to modify and adjust their services on a continuous basis in response to changes.• PES should be aware of their role as a public policy tool.• PES should put all efforts into the maximum possible integration of their functions.• PES should become a new type of institution in the field of services with the personnel playing the leading role and continuously improving the efficiency and quality of the delivered services.

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1. Each Member of the International Labour Organisation for which this Convention is in force shall maintain or ensure the maintenance of a free public employment service.2. The essential duty of the employment service shall be to ensure, in co-operation where necessary with other public and private bodies concerned, the best possible organisation of the employment market as an integral part of the national programme for the achievement and maintenance of full employment and the development and use of productive resources.

Employment Service Convention, 1948 (No. 88)

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Arguments in favor of setting up public employment services:

=

PES can enhance the efficiency of the labour market operation and transparency of the information about the labour market;= PES is a useful tool in providing an equal access to the labour market and protection for individuals who, without this assistance, would find themselves in a particularly disadvantaged position;= PES can make up for the negative impacts caused by structural imbalances in the economy;= In countries where the unemployment benefit system is in place

,

PES can use it to take effective measures for quick job placement of individuals receiving benefits.Legal form of organization for public employment service providers:1. As part of the Ministry of Labour (or any other unit having certain functions and operating in this field of activity

.

It can be part of a public authority, or act as independent executive body

).

2. As separately administered organization subordinated to a commission or council with representatives of social partnership organizations.3. As private organization (e.g. in Austria).

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General objectives of the public employment services:matching and job placement;

f

acilitating occupational and territorial mobility;data collection and analysis to evaluate the labour market situation;management of unemployment insurance;facilitating the development of social and economic plans

.

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Possible contradictions in PES activities:between fairness and efficiency of the delivered services;

between employment of long-tern unemployed persons and

labour market capacities;between allocation of resources for building opportunities to implement active employment policy;between the processes of centralization and decentralization;between services delivered directly by PES and services provided by external organizations

;

between competition and cooperation of private employment agencies;between the role of a service provider and functions of an executive body implementing public policies.7

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Working age population employment is a key factor taken into account when elaborating the strategy for social and economic development of a country

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Theoretical models of employment policies in practical use in the world:American;Nordic;European

;

Japanese. 8

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The American model implies creating a great number of low labour productivity and low income jobs

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The main achievements of the model are reduced unemployment rate in the country and a growth of population with low to modest incomes. A distinctive feature of the American model is the decentralized legislation regulating employment and unemployment assistance which

is adopted separately in each state.

                Companies have rather a tough attitude towards employees who can be dismissed in case of the reduced labour demand or reduced production while the employees’ working time does not change.9

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The Nordic Model

It provides universal employment by creating jobs in the public sector.           Wages and working conditions are average.           The achievement of this model is a minimum unemployment rate.          A distinctive feature of this model is the fact that the main goal of the state employment policy is to prevent unemployment

rather than

provide all possible assistance to citizens who have already lost their jobs10

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The European

Model

The characteristic features include: reduction of the employment rate as a result of increased productivity and growth of incomes for the working population. There is an expensive system of benefits which allows a citizen to be unemployed for a prolonged period of time while seeking the most suitable job

.

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The Japanese Model. It is characterized by the system of lifetime employment

when the income depends on the employee’s length of service and age. A lifetime job secures a full-time employment till the age of 55 – 60. The employees’ career is built in advance according to the approved plan

which includes skills development and promotion opportunities. This tactic favorably affects the perception of duties by employees and enhances their responsibility for the quality of work.           Employees in Japanese companies develop a deep concern for the prestige of their enterprise and its brand and cultivate intra-company patriotism.            If it is necessary to reduce production, it is

done not

by reducing the number of workers, but by reducing working time.

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The Russian employment policy is developing through a combination of international practices, but with regard to national specifics.

Unlike other countries, the Russian Federation applies two concepts: officially registered unemployment and actual unemployment. Officially registered unemployment is the total number of unemployed persons who are registered in record books of a public employment service provider and who are seeking jobs through this service provider; according to estimates, this number is lower than the number of actually unemployed persons.

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Therefore, looking at different models of providing public employment services in leading countries, we can make a conclusion about their diversity and individual features stemming from certain

historical and political contexts of the countries’ development

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Taking measures to stabilize the labour

market situation in the times of the crisis

In the field of national legislation for public employment services: separation of powers and functions in the field of labor market and employment regulation between federal executive bodies, executive bodies of constituent entities of the Russian Federation, local authorities and employers, as well as clarification of funding sources to promote employment and provide cash benefits for unemployed citizens;

support

to small businesses and entrepreneurship in order to retain jobs and support employment (for workers of enterprises);adjustments to the labour law15

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In the field of workforce skills improvement and development of individual competitive advantages in the labour market, supply

of

workers and specialists with required skills and qualifications:Clarify the demand for workers and specialists in large occupational groups, by type of economic activity and individual regions, and establish links between the demand and the volumes of training for workers and specialists in the vocational education system in order to achieve balanced labour supply and demand in the labour market;

facilitate

employment of graduates of all forms of vocational training and increase the role of educational institutions; develop vocational and career guidance for school students, increase their motivation to choose occupations most demanded in the labor market;streamline and develop (if necessary) training programmes, including full-time and remote (independent) training modalities;

 study and

introduce telecommuting practices,

taking into account

diverse population groups.

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Taking measures to stabilize the

labour

market situation in the times of the crisis

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Improve vocational and career guidance and psychological support of the population; Develop and implement the system of occupational standards that complies with

occupational skills requirements with regard to quality and productivity of performed work

; Adopt digital technologies and electronic workflow (training and technical equipment).17

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In the field of employment, stimulating job creation and retention, improvement of social partnership forms in sectoral and regional labour markets:

Analyze and provide concrete implementation of

the State Programme on Promotion of Employment;Provide public support to enterprises facing a difficult economic (financial) situation;Take into account the indicators reflecting labour flows in terms of regions and sectors and develop appropriate measures to stabilize the labour market situation

; introduce

retraining programmes;Analyze prospects of employment growth across economic sectors; Support all forms of small businesses and self-employment in all economic sectors with a particular focus on agricultural sector and services; Develop social partnerships at all levels; design mechanisms of interaction between executive bodies, employers, trade unions and other

organizations representing workers

when dealing with employment issues in sectoral and regional

labour

markets.

Taking measures to stabilize the

labour

market situation in the times of the crisis

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In the field of regional labour market development:Conduct a monitoring of implementation of programmes and measures facilitating employment in response to

Covid

-19 crisis; Develop (recover) small businesses in the services sector (with a view to regional specifics) to create conditions for job retention and employment of the unemployed;Enhance (specify) interaction of public employment services and social partners in the

labour

market;Evaluate and consider the current regional and international labour migration situation, possibilities of attracting foreign labour.Taking measures to stabilize the

labour

market situation in the times of the crisis

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In the field of employment support for individuals with special needs:Implement the principle of targeted public employment services with a focus on vulnerable groups of the population: disabled, families with multiple children, single parents, households raising minor

and disabled children,

persons of pre-retirement age, under-age young people from 14 to 18 лет, persons discharged from the military service and their families, internally displaced persons (with regard to benefits provided to parents with minor children); Develop and implement special job placement programmes, vocational guidance and vocational training; introduce new socially oriented technologies

; adopt modern

forms of education (such as remote and module-based training); develop special infrastructure for public employment services; Taking measures to stabilize the

labour

market situation in the times of the crisis

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In the field of funding for public employment support activities:Provide full implementation of activities for public support to unemployed citizens (the level of unemployment benefits, payment terms

,

entitlement conditions) etc.;Consolidate financial resources for implementation of public employment support activities and ensure efficient use of funds; Raise funds from local budgets and employers to implement employment support activities for workers to be dismissed.

Taking measures to stabilize the

labour market situation in the times of the crisis21

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In the field of efficiency increase of public employment services:Improve operational work of public employment service providers with all groups of population to facilitate employment

;

Optimize service delivery for jobless and unemployed individuals using different patterns of operation (remote service provision, using technical means, application through service platforms); Implement projects to improve public support services, build an image, adopt new (progressive) digital technologies;

Implement Employment Academy Project

(jointly with ILO).22Taking measures to stabilize the labour

market situation in the times of the crisis

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Improve professional training of public employment service staff as part of the adoption of the new model and implementation of Employment Service 2.0 Project;Study and promote practices used by pilot public employment service centers

(

by the results of 2019-2020 performance) in terms of integrating the principles of professional, targeted and tailor made customer services;Adopt professional standards for specialists in public employment services;Learn from practices used by public employment services in other countries in response to Covid-19 pandemic and, whenever necessary, apply these practices in Russia.

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“Attention to the labor market situation, to the problems of citizens affected by unemployment should be maximum at all levels of government.”Vladimir Putin, President of the Russian Federation

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Thank you for your attention!25