ENGAGING EMPLOYERS IN SKILLS DEVELOPMENT FOR THE 21ST CENTURY: JOINT AUSTRALIAN GOVERNMENT, AND OECD WORKSHOP 2-3 June 2016 Presentation by Jonathan Barr, Policy Analyst, OECD

Youth unemployment remains high Youth unemployment rate, 2007, 2011 and 2015 As a percent of all youth aged 15/16-24 in the labour force Country Australia Austria Belgium Canada Chile Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland* Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States OECD countries* Source : OECD estimates based on national labour force surveys. *data for 2015 not available (replaced by 2014 data) 2

OECD Engaging Employers Project: List of case studies Stream 1: Engaging employers in apprenticeship opportunities at the local level Stream 2: Stimulating productivity and quality employment through successful partnerships with employers 1. Local initiatives to promote apprenticeships in the UK: case studies in Manchester and Leeds 1. Engaging employers in skills development and utilisation in Korea 2. Apprenticeships in a hyper-rural setting: the case of Nordland, Norway 2. Skills utilisation in Singapore 3. Innovative Approaches to Attracting and Retaining Apprentices – A Case Study of Western Australia 3. The Innovative Workplaces programme in the UK 4. Youth skills development and retention in a small rural town, by one specific industry: the Otorohanga New Zealand case study 4. Local Action for New Disability Services – the Australia Example 5. Apprenticeships for disadvantaged youth in the United States of America – The Urban Technology Project 5. Guipuzkoa: Promotion of a Socially Responsible Territory 6. Youth Employment Programmes, Employer Involvement and Vocational Training in Germany 6. Skills utilisation in the restaurant industry – case study from the United States 3

There are large differences in the use of apprenticeships across the OECD Current apprentices as a share of adult population year-olds (2012) Note: In Japan, Italy, Spain, the United States, Korea, Sweden and Ireland the estimated share of current apprentices is not significantly different from zero. Apprentices are defined as currently studying in upper secondary education or short postsecondary programmes and defining themselves as apprentices or holding an apprentice contract. Source: Survey of Adult Skills 2012 (own calculations) 4

No one size fits all apprenticeship model/framework Large variations across the OECD in terms of: 1. duration of programmes 2.percentage of time spent on the job training 3.completion rates 5

Promoting High Quality Apprenticeship Programmes High quality apprenticeship programmes that are more valuable to youth and more attractive to employers share a number of characteristics: Are not limited to specific age groups. Facilitate participation by disadvantaged youth. Include a strong training component. Provide training that is not too narrowly focused. Cover multiple sectors and occupations and encourage the participation of women. Involve an equitable sharing of their costs among employers, the public authorities and apprentices. Operate according to competence ‐ based completion rather than time ‐ based completion. Require good governance to prevent misuse as a form of cheap labour. Are jointly managed by the social partners and relevant institutions. Are certified and well integrated with the formal schooling system. 6

The local level is critical to stimulate employer engagement with apprenticeships City governments can also act as a central coordinating body, to coordinate outreach to avoid duplication and “engagement fatigue” among local employers. Importance of local leadership from elected officials, mayors and local employment services and economic development organisations Local leaders can engage business include breakfast meetings, media and marketing campaigns, as well as letters to individual employers Local government can use their spending power and funding policies to ensure that employers provide apprenticeships. Good examples: Local apprenticeship hubs in the United Kingdom, Otorohanga, New Zealand 7

Encouraging employer leadership High levels of employer involvement = critical success factor for effective apprenticeship systems Employers can take “ownership” of the system Promoting the benefits of apprenticeship to employers while also exerting moral pressure on employers not participating to rethink their approach Good examples: European Alliance for Apprenticeships, ABN Group Australia, Apprenticeship

A large share of apprentices work in small companies Source: Survey of Adult Skills, 2012 (OECD calculations) 9

How to best target SMEs? Beyond networking, specific public policy support and outreach measures are needed to actively engage and encourage SMEs to participate in apprenticeship frameworks. In many cases, public policy actors need to convince SMEs of the “business case” for changing prevailing practices, which may encourage low-quality working conditions Good examples: Group Training Organisations (GTOs), Australia; Training Offices, Norway; Customized Placement of Trainees in Enterprises programme, Germany; 10

Service delivery innovation within VET Employing back-to-back education modules blended and online learning to reduce the time apprentices are away from the workplace and accommodate employer workload priorities enabling apprentices to complete portions of their workplace hours by expanding the in-school component to include real world, living lab work experiences and co- op placements 11

Key components of a local employer engagement strategy for apprenticeships Understanding the local labour market Gathering information about jobs Creating a database of employer contacts Building good employer relationships Approaching employers locally Working in cooperation with other stakeholders Use intermediaries Build networks among employers Setting clear targets and goals Defining number of apprenticeship placements and completions Targeting non-traditional sectors Ensuring a flexible training system with a focus on quality Flexible programme delivery and curriculum Occupational frameworks/profiles that involve employers Provide meaningful incentives Use of tax credits, subsidies, grants, recognition Setting clear legislative/regular framework Creating clear pathways Career advice to youth and opportunities for progression 12

Thank you 13