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Presentation to OECD Policy Forum on the reassessment of the OECD Jobs Strategy 7-8 July 2005, Tokyo, Japan. Better Jobs, Working Smarter. Overview. It is over a decade since the OECD Jobs Strategy was launched The New Zealand labour market has changed considerably over that time
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Presentation to OECD Policy Forum onthe reassessment of the OECD Jobs Strategy 7-8 July 2005, Tokyo, Japan Better Jobs, Working Smarter
Overview • It is over a decade since the OECD Jobs Strategy was launched • The New Zealand labour market has changed considerably over that time • By the end of the 90s, New Zealand had addressed many of the issues raised by the OECD Jobs Strategy. In the new millennium, New Zealand began to tackle new challenges. • We are still working to fully understand how to respond to those challenges.
NZ’s current labour market • New Zealand’s current labour market performance is generally positive: • Low unemployment rate: 3.9%, second lowest in OECD • Percentage of long-term unemployed ( > 6 months) is only 24% • Dramatic growth in the size of the labour force and numbers employed • High labour force participation: 67.7% of those aged 15 and over • Improved qualification attainment of the workforce: 75% of the workforce have a qualification. • Significant growth in numbers of people learning in the workplace: over 150,000 in formal industry training, including over 7,000 Modern Apprentices • Low levels of industrial disputes / days lost due to industrial action
NZ’s Labour Market Challenges • Despite a generally positive labour market situation, a number of challenges exist: • Demographic trends towards an aging population • Lower participation and higher unemployment for Maori and Pacific peoples • Lower participation and incomes for women and those caring for others • Skill and labour shortages at 30 year highs • Poor literacy and numeracy amongst a large percentage of the workforce • Workplace injury levels continue to be higher than desirable • Relatively low levels of labour productivity • Uneven productivity growth across sectors and regions
Meeting the challenges • New Zealand needs to address a number of inter-connected factors: • Participation – and the social, demographic and economic factors that drive, support or hinder it • Skills – and the factors that enable their development, use and retention • Workplace quality and productivity – the attractiveness of and rewards from work • Sector, industry and regional performance – the linkages between the labour market and economic development
Participation • Responses • Single benefit and new service approach • Supporting parents and carers’ participation • Pathways to Inclusion • Youth transitions • Pacific workforce strategy • Challenges • Social & cultural change • Demographic trends • Changing nature and demands of work
Skills • Responses • Basic, secondary and tertiary education reforms • Adult literacy and foundation learning strategy • Industry training strategy • Immigration – temporary & permanent • Connecting with New Zealanders abroad • Challenges • Skill and labour shortages • Adult literacy and numeracy • Effective utilisation of skill • Mobility of skilled labour
Workplace quality & productivity • Responses • Workplace Productivity Agenda • leadership & management • workplace culture • innovation & technology • people & skills • work organisation • networking & collaboration • measurement • Workplace Health & Safety Strategy for NZ to 2015 • Work-Life Balance Project • Challenges • Labour productivity levels are low • Workplace injury continues to be a concern • Workplaces not attractive to key potential workers
Sector & regional performance • Responses • Labour market information • Sector & industry engagement • Regional engagement • Skill and labour market leadership roles • Challenges • Small size and openness of economy • Imperative to lift value of products and services • Diversity of performance across sectors and regions
Critical broader linkages • Economic linkages • Social linkages • Cultural linkages
Reassessing the OECD Jobs Strategy • Recognise new social and economic challenges • Address the inter-connections between: • Participation • Skills • Workplace quality and productivity • Sector, industry and regional performance • Social and economic outcomes • Link the jobs strategy to broader economic and social strategies • Allow for the differences between countries, regions and their economic, social and cultural context