The ILO’s approach to comprehensive national employment policy frameworks – Lessons and tools for implementing SDG8 UNDP-ILO Workshop on Employment, Trade and Human Development in Central Asia Almaty, June 2016 Aurelio Parisotto, Head Country Policy Development and Coordination Unit Employment Policy Department ILO Geneva 1

Outline 1.The ILO approach – Promoting «comprehensive national employment policy frameworks» 2.How it works in practice? Are we having an impact? 3.What have we learnt that can help countries in the region achieve SDG8? 2

Proportion of people who selected jobs as one of their priorities in the 2030 Sustainable Development Agenda - by country Source: United Nations My World survey,

1. The ILO’s approach NEP Quantity – Work for everyone who is available and looking for work Quality – Such work is as productive as possible Non-discrimination - There is freedom of choice of employment and fullest possibility for each worker to utilize her/his skills, irrespective of race, sex, age, religion, political opinion, nationality or social origin. The three guiding principles of an employment policy NORMATIVE FRAMEWORK - The ILO Convention on Employment Policy No. 122 (1964) provides the global reference for employment policy. Ratifying States (109) accept an obligation to declare and pursue an “active policy” designed to promote full and productive employment as a major goal, consulting the social partners and taking into account national circumstances.

GLOBAL POLICY TEMPLATES A number of templates were international agreed to help ILO tripartite constituents articulate national policies and programmes for stronger employment outcomes The Global Employment Agenda (2002) is a “coherent and coordinated international strategy for the promotion of freely chosen productive employment” The Conclusions concerning the promotion of sustainable enterprises - (2007) outline the conditions for a conducive environment for enterprise development The ILO Declaration on Social Justice for a Fair Globalization (2008) recognizes that the four strategic objectives underlying decent work are inseparable, interrelated and mutually supportive The Global Jobs Pact (ILC 2009) accounts for a portfolio of policies to promote investments, employment and social protection in the wake of the financial crisis The Conclusions concerning the second recurrent discussion on employment (ILC 2014) invite countries to promote a comprehensive national employment policy framework based on a menu of policy choices to be adapted to national circumstances 5

The «comprehensive approach» to employment policy - A diversified array of complementary policy measures National Employment Policy (NEP) Economic and social policies Trade, tax, industrial, infrastructur e and sectoral policies Pro- Employment macroecono mic policies Education and training, migration and demography Policies to encourage transition to formality Labour market policies and institutions Active labour market policies Passive labour market policies Wage policies, employment legislation, collective bargaining Enterprise policies, SME development and entrepreneurship 6

A carefully crafted process of policy design and implementation – A concerted and coherent framework linking all employment policy interventions and all relevant stakeholders Tripartite processes for policy coherence across economic, social and environmental issues Inter-institutional coordination Labour market information systems Monitoring and evaluation 7

The ILO facilitates the employment process at country level through:  labour market situation analysis  advice, analysis and research on how to increase the employment content of growth  capacity building for government and the social partners  supporting tripartite and multi-stakeholder consultation and policy dialogue and A. Preparation B. Issue identification C. FormulationD. Adoption E. Programming F. Implementation G. Evaluation 2. How it works in practice - The NEP policy cycle 8

Are we having an impact? The case of Morocco FROM labour policy as the only response to a jobs crisis a political debate paying attention only to the situation of educated job- seekers unemployment as the only target of policy responsibility resting only with the Ministry of Labour a centralized top-down strategy TO a multidimensional policy package including trade and enterprise development a broader view encompassing all vulnerable groups (women, low skilled workers, rural workers, migrants) a range of indicators for measures to tackle underemployment, informality, inactivity a new coordinating body including several line agencies and ministries a sub-national approach where local authorities have responsibilities and funds for employment promotion. 9

3. What have we learnt that can help countries in the region achieve SDG8? - CONTENT 10 NO ONE SIZE FITS ALL– “good fit” more than “best practice”  Growth levels: Pro-employment macroeconomic frameworks - reasonable price stability - countercyclical fiscal policies - stable exchange rates and capital account management  Composition of growth: Investment-led strategies to promote productive transformation - “horizontal” policies: business environment, R&D, infrastructure, skills - industry/value chain-specific “vertical” interventions - financial inclusion (SMEs)  Focus on the quality of jobs: it is transformative too - wage policy and minimum wage systems - social protection: stabilizer and productivity-enhancing - limits of structural reforms  Labour market access: women, youth, disadvantages groups - targeted and well-designed ALMP measures can help promote inclusive labour markets, but we do not know much about their aggregate impact

Lessons learnt - PROCESS 11 IT TAKES TIME– policy habits are hard to change Benchmarks for progress include the following:  Solid diagnostics - Labour market information, research and analysis to identify drivers of change and entry points for the employment policy  Clear priorities for immediate action shared by stakeholders – “depth of consultations leading to policy design”  Strategic vision - to ensure consistency of policy changes over the short and the longer term - “solid fit to the development plans”  Budget allocations – Policy announcements linked to quantifiable budget targets – “credible political commitment”  Inter-ministerial coordination and policy coherence - Making employment a cross-sectoral goal and responsibility – “needs leadership from the top”  Effective support system – capable and competent bureaucracies – “nurture pockets of efficiency”  Monitoring- Realistic monitoring is important for accountability and policy fine tuning – “introduce feedback loops”  Last but not least … social dialogue

To conclude: some practical ILO tools RESEARCH, ADVOCACY AND POLICY GUIDELINES Resource guide for the formulation of national employment policies Resource guide on Gender issues in employment and labour market policies published in English/French/Spanish. New guide on "National Employment Policies: a guide for workers' organisations", available in English/Spanish/Russian/Arabic. Руководство по формированию национальной политики в сфере занятости Technical guidelines for the formulation of decent work country programmes Multiple Employment working papers, books, and policy briefs on pro-employment macroeconomic policy frameworks TRAINING Two weeks training course on Employment Policy (English-Frenchl) held annually in ITC Turin – next one will be held from 26 September to 7 October 2016 Training course on “Macroeconomic policies, jobs and inclusive growth” organised at ITC Turin – next one from November

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