Cedefop

Active labour market policies

Foundations

Policy area

The instrument was used generally for the impact assessment of labour market policies. Its results and methodological gains have been used in the elaboration of impact assessment studies for the Ministry of Labour, regarding the implementation of active employment policies under the Unemployment Insurance Act.

Policy goal

Identification of future skills shortages and needs/demands, labour market trends, which is useful for the design and assessment of active labour market policies. This instrument uses a more sophisticated methodology (dynamic general equilibrium) and implies a macro-economic forecasting tool to indicate all macro-economic aggregates in an autonomous process. It was recently designed by INCSMPS and Fondazione G. Brodolini Italy in an ESF-financed project. Two models of the project has been merged to enable the National Labour Research Institute to anticipate future skills needs, so as to enable decision-makers to use it for tailoring and targeting LM interventions.

Mismatch

Other

This instrument has been designed to monitor skills demands and supply as part of VET related claims of particular labour market stakeholders. Although skills mismatches are not truly at the core if it, it could also be used for that, and in fact it has served as the assessment of active employment measures relating to this side of labour market policies and initiatives.

Aim of policy instrument

Upskill and match skills of unemployed

Upskill employed adults

Facilitate job/career transitions

Legal basis

Other

The instrument has been constructed in the frame of an ESF financed project (under the SOP HRD 2007-13), which included a range of activities dedicated to increasing labour market flexibility and fostering the concept of flexicurity in the Romanian labour market and with Romanian employers.

Administrative level

National

Main responsible body

The National Research Institute for Labour and Social Protection of Romania - INCSMPS

Stakeholders

Design training programmes to activate unemployed

Fondazione Giacomo Brodolini -IT had a main role in designing and testing the instrument, as well as during the early phase of the implementation of the instrument. It has supplied the original mathematical model of the instrument and the set of forecasting equations incorporated into the model. It has also supplied the documentation of the instrument.

Funding

The instrument was originally developed with ESF financing under the SOP HRD 20007-13. After the termination of the project in 2012, the instrument has been financed by the INCSMSP from its own generated resources.

Intended beneficiaries

Mainly research centres and universities. The system has been designed for use by specialised users and researchers so as to enable them to provide forecasts, analyses, assessment and impact studies etc. Therefore, the instrument mainly supports research and policy development and decisions. The product has been intended to also enhance the capacity of the INCSMPS to provide forecasts, analyses and other products to labour market actors, including national policy making bodies, enterprises and social partners.

Processes

Use of labour market intelligence

Inform the design of national qualification frameworks (NQFs)

National data have been used as inputs to the model. The model made use of a dynamic general equilibrium econometric model that allowed for the impact assessment of new interventions, such as labour market policies. Therefore, it has been relevant for the assessment of national policies, as well as for strategic business decision at the sectoral level.

Financial schemes

The initiative has been financed via an ESF project. There are no other financial schemes or instruments involved. Its functioning after 2012 has been sustained by the INCSMPS using own resources.

Frequency of updates

The instrument has now been discontinued. Before that, there were updates on an ad-hoc basis.

Development

The partner FGB made several modifications to the model to adjust it to Romanian realities and data availability. However, the main model has not been changed. Equations have been tested and adjusted for Romanian data.

Barriers

Not particularly. The two partners have been smoothly cooperating during and after the project period.

Success factors

The good cooperation between the two partners, as well as the fact that the two organizations involved share the same goals and have a commonality of interests and preoccupations.

Monitoring

The progress has been assessed by the number of successive projects that have been developed following its implementation (the so-called multiplier effects in the economy and society, as it has been called in the initial project proposal).

Innovativeness

Very innovative

Very innovative as it is introducing a novel method of econometric modelling that is capable of assessing the impact of "exogenous shocks" on an already functioning system, i.e. the newly introduced active labour market policies are to be assimilated to "shocks" to an existing and functioning system and therefore their "impact" can be assessed against a state where they would not have existed (the shock would not have taken place actually).

Sustainability

Evidence of effectiveness

The National Institute produced a set of studies for the Ministry of Labour (2014-15) that assessed the performance of the active labour market measures, active ageing measures, vocational education and training incentives for enterprises and activation measures for the rural areas. Benefits have been in line with expectations. The instrument has been useful for the further development of the Institute's capacity to provide professional support for decision making in the area of labour market, employment and skills' development policies. The instrument has also been useful for active ageing measures' assessment, as well as being considered as an alternative to the more traditional instrument CEDEFOP is using for the forecasting of the demand and supply for skills at Pan European level.

Engagement of stakeholders

The engagement with stakeholders has been on an ad-hoc basis, i.e. when projects have been contracted with the various beneficiaries, and a need to use outputs or methodological elements of the instrument has arisen.

Transferability

Not easily transferable

Not easily transferable even though elements of the instruments have already been used in Italy by Fondazione G. Brodolini Italy.

Sustainability

The instrument has been discontinued, but the experience gained has been capitalized in other projects, as well as in the construction of other instruments.

Details

Description

Timespan

2013-15 and currently run by the Ministry of National Education.

Stage

Fully operational

Focus area

Foundations

Policy area

Higher education

The instrument has been elaborated specifically to assess the labour demand for higher education graduates and thus to aid in the adaptation of the higher education supply to the needs of the labour market.

Policy goal

The policy focuses on matching the supply of higher educated graduates with the demand of the employers, the adaptation of curricula and strengthen the link between higher education supply and the changing demands of the real economy. The instrument has been designed to assist the decision making at national level and thus reduce the gap between the supply of higher educated graduates and the demand coming from the labour market. It has been used to forecast trends by occupation and thus inform the national decision making process, as well as at the university level, with respect to the trends of the labour market and help adjust the structure of the university studies, adjust curricula and education plans and ultimately assist in creating a better match between education and the needs of the enterprises.

Mismatch

Explicitly designed to address skill mismatch

The instrument is explicitly designed to address skills mismatches by providing decision makers with an instrument to assess the trends in the labour market at the occupational level, and thus tackle mismatches between the supply of higher educated graduates and the needs of the labour market by occupation. It also helps in designing and tailoring curricula according to the changing content of occupations.

Aim of policy instrument

Address skill shortages

Facilitate job/career transitions

Legal basis

Other

The instrument has been elaborated under an ESF co-financed project SOP HRD 2007-13.

Administrative level

National

Main responsible body

The Ministry of National Education

Stakeholders

Government (central & regional)

The National Scientific Research Institute in the field of Labour and Social Protection (INCSMPS) has been responsible for the design of the forecasting instrument, as well as of the occupational analyses. After the termination of the ESF financed project, current funding of the system only comes from the national budget. Monitoring is done by the Ministry of National Education.

Funding

The funding comes from the state budget under the regular allocations for the functioning of the central apparatus of the Ministry of Education, the department for higher education.

Intended beneficiaries

The higher education institutions, as well as the Ministry of Education and research centres.

Processes

Use of labour market intelligence

Inform career-making decisions of students

Design standards and accreditation

A forecasting instrument has been designed with a focus on occupation groups using LFS and Census data. It provides the decision makers with information on the main trends regarding the demand for a certain occupation in terms of the replacement and of the expansion demand.

Financial schemes

The project has been financed via the ESF under SOP HRD 2007-13.

Frequency of updates

The Ministry of Education does regularly updates, but it is not possible to tell how frequently these are performed.

Development

The approach has been adjusted to provide more detail on occupations. Several test runs have taken place so as to ensure that the main occupation trends are correctly represented, and that the results are plausible (the results of forecasting at occupational level should not come into contradiction with results of forecast at sector level).

Barriers

There were no barriers in the implementation of the project.

Success factors

Good cooperation between the partners in the project (INCSMPS and the Ministry of Education).

Monitoring

The progress is measured by the Ministry of Education, but no indicators are actually available to date.

Innovativeness

Very innovative

It has been an approach focusing on the forecasting of trends by occupation, with a high level of disaggregation.

Sustainability

Evidence of effectiveness

There is no impact evaluation, but there is evidence that the decisions of the Ministry of Education regarding the number of students, and especially the number of students' places, in state higher education institutions for the different profiles of study and specializations of higher education are taken based on the data provided by the instrument. Benefits have been largely as expected. No unexpected costs or benefits, but there is a need to provide financing for each update of the instrument.

Engagement of stakeholders

Stakeholders are engaged regularly by the Ministry of Education, who is constantly cooperating on this issue with the universities, as well as with organisations, unions of the students, and professors' and non-didactic staff unions etc.

Transferability

Easily transferable

The occupational analysis, as well as the occupational element of the instrument may be transferred, but an ISCO type structure of the occupations has to be available. The variations in the classifications of sectors of activity may cause some disturbances as the trends will be affected. However, it should be taken into account that for transferability, significant changes to the system of equations that underpins the whole instrument would need to be made.

Sustainability

The instrument may continue for the coming years, but there is a clear need of funding for updating.

Details

Description

Timespan

The instrument is operational, as the Regional and local action plans for VET are updated on a regular basis.

Stage

Fully operational

Focus area

Adult education and training

Foundations

Policy area

The instrument, consisting of forecasting studies and analyses, has been developed for the substantiation of the local and regional action plans for VET, which are a partnership for involving all relevant stakeholders at local and regional level in the development of VET specific supply and its matching with local and regional market demand.

Policy goal

Identification of future skills shortages and needs/demands. This project focused on the identification of the potential demand for VET, based on quantitative approach, having been inspired by the Pan-European model to forecast the supply and demand for skills, referring to levels of occupations and terms of development of regions and their relation to VET demand.

Mismatch

Explicitly designed to address skill mismatch

The instrument has been designed to monitor skills demands and supply as part of a general reform of VET in Romania, which aims at matching the supply of VET as closely as possible with the demands of the employers.

Aim of policy instrument

Upskill and match skills of unemployed

Address skill shortages

Upskill employed adults

Facilitate job/career transitions

Legal basis

Other

An ESF Sectoral Operational Programme Human Resource Development (SOP HRD) 2007-13 financed project.

Administrative level

Regional

Main responsible body

The National Centre for the Development of Vocational Education and Training (CNDIPT- Centru National pentru Dezvoltarea Invatamantului Profesional si Tehnic)

Stakeholders

Government (central & regional)

Inform job-search decisions of unemployed

The National Scientific Research Institute for Labour and Social Protection of Romania (INCSMPS) has been in charge of the development of the forecasting and analysis component of the project. A transnational partner from PT has also been involved in the part relating to mutual learning and exchanges of good practices and experiences.

Funding

The instrument is financed from the annual budget of the CNDIPT (no figures specifically for the instrument are available).

Intended beneficiaries

The project's main target are the directors of VET schools. Employers, union leaders, academics with an interest in VET, and local and regional stakeholders such as the local authorities have also been targeted.

Processes

Use of labour market intelligence

Inform and train career guidance and counsellors

Inform the design of national qualification frameworks (NQFs)

National and regional data on VET, labour force and population, as well as national and regional economic and labour market trends. The econometric model has been based on time series data and LFS data have been used. The forecasting studies have been validated by the main regional and local stakeholders before being released to the public.

Financial schemes

The project has been financed from an ESF project under the SOP HRD 2007-13.

Frequency of updates

The instrument is maintained by the Centre for the Development of VET (the CNDIPT). The updates coincides with the production of the regional and local action plans for VET, which are annual.

Development

No changes to the instrument have been made.

Barriers

Not specific ones except some lack of information, especially at regional and local level and the shortness of data series.

Success factors

Good cooperation with local and regional stakeholders in VET.

Monitoring

The National Centre for the development of VET is assessing the progress. The main measure is the regular updating and elaboration of regional and local action plans for VET.

Innovativeness

Very innovative

Very innovative as it is aimed at forecasting at regional and even local level, which brought the instrument very much in line with the demands of the local communities interested in the development of VET.

Sustainability

Evidence of effectiveness

The regular updating and elaboration of the regional and local action plans for VET is evidence of the effectiveness of the project. However, there is no evidence of a particular and dedicated assessment exercise of the instrument being undertaken so far. The benefits have been in line with expectations. Enterprise and unions at local and regional level have also been interested in the project.

Engagement of stakeholders

Stakeholders are involved, as the action plans have to be produced on an annual basis. Therefore, there are annual meetings both at the regional and local level.

Transferability

Easily transferable

Easily transferable as elements of the instruments have already been used in some other EU member states with developed employment structures and policies.

Sustainability

The instrument will continue, as it is supporting the production of the VET action plans at regional and local level.

Details

Description

Timespan

Operational since 2015.

Stage

Fully operational

Focus area

Active labour market policies

Foundations

Policy area

It is used to better inform employers in the labour market and to assist in targeting the interventions of the National Agency for Employment.

Policy goal

The aim is to respond to a growing need of updated information from employers, social partners and other stakeholders of the labour market, in order to improve access to labour market information, to deal with mismatches, as well as to enhance the capabilities of the National Agency for Employment to provide and elaborate labour market analyses and forecasts.

Mismatch

Explicitly designed to address skill mismatch

By providing in depth analysis and forecast, including at the regional level and by occupation, it assists employers in meeting their skills need and filling their skills' gaps. It also enables the public employment services to better target its supply of specific interventions and thus allocate resources efficiently.

Aim of policy instrument

Upskill employed adults

Broadly address skill mismatch

Legal basis

Other

ESF financed project.

Administrative level

Regional

Main responsible body

National Agency for Employment (Agentia Nationala pentru Ocuparea Fortei de Munca, ANOFM)

Stakeholders

Chambers of commerce and industry

Employer federations

Government (central & regional)

Design training programmes to activate unemployed

Trade unions

The National Research Institute in the field of Labour and Social Protection of Romania (INCSMPS) has been the main partner that has designed the technical part of the instrument and supplied the methodology for the forecasting instrument, as well as performing regular updates upon request. However, monitoring, evaluation and maintenance are entirely the responsibility of the National Agency for Employment (NAE). The other stakeholders have been involved in the testing of the instrument, as well as in the validation of the data from forecasting.

Funding

The current functioning of the system (following termination of the ESF financed project) is financed from the annual budget of the PES.

Intended beneficiaries

The main beneficiary of the system is the National Agency for Employment and its territorial offices (the "judet" employment offices - 42 nationally, one each for every judet/county and one for the municipality of Bucharest, and the local employment offices). Enterprises, unions, local authorities, academia, civil society and individuals in search of a job and training opportunities are also counted as beneficiaries.

Processes

Use of labour market intelligence