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 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 economic performance

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

Inter-Connected Factors

Participation Challenges Social & cultural change Demographic trends Changing nature and demands of work Responses Single benefit and new service approach Supporting parents and carers’ participation Pathways to Inclusion Youth transitions Pacific workforce strategy

Skills Challenges Skill and labour shortages Adult literacy and numeracy Effective utilisation of skill Mobility of skilled labour Responses Basic, secondary and tertiary education reforms Adult literacy and foundation learning strategy Industry training strategy Immigration – temporary & permanent Connecting with New Zealanders abroad

Workplace quality & productivity Challenges Labour productivity levels are low Workplace injury continues to be a concern Workplaces not attractive to key potential workers 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

Sector & regional performance Challenges Small size and openness of economy Imperative to lift value of products and services Diversity of performance across sectors and regions Responses Labour market information Sector & industry engagement Regional engagement Skill and labour market leadership roles

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