New OECD report supports Glasgow City Region in future-proofing its skills system
A new report issued today by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities sets out an ambitious agenda for future-proofing the employment and skills systems in Glasgow City Region. The report was launched today (Monday 16 September 2024) at an event in the City Chambers where stakeholders discussed the findings in the context of the Region’s long-term ambition to shape a skills system that will support regional economic growth, social inclusion and the transition to Net Zero.
The report highlights key labour market and skills challenges facing the Region in light of global megatrends such as the green and digital transition and the fundamental role of an effective regional skills system in overcoming them. The report also highlights the Region’s potential to leverage its strong connections with education institutions, businesses, and third-sector organisations to implement policies that will future-proof its system for lifelong learning.
Drawing on insights from local and Regional initiatives as well as international best practices, the report points to opportunities for Glasgow City Region to design a skills and employability system that provides re- and upskilling opportunities for adults, aligns training to rapidly evolving labour market demands, supports those furthest from the labour market, and guides young people in their transition from school to work.
The report is the outcome of a one-year cooperation between the OECD Centre for Entrepreneurship, SMEs, Regions and Cities, the Glasgow City Region and JPMorganChase and is part of ongoing cooperation between the OECD and JPMorganChase on future-proofing skills systems in cities and regions.
Chair of the Glasgow City Region Cabinet and Leader of Glasgow City Council, Susan Aitken said:
“The labour market both here in the Glasgow City Region and, indeed, globally is changing. Technological advancements, the demands of the climate emergency and demographic shifts require our existing and emerging workforce to have the necessary skills to seize the opportunities of that change.
“The City Region has long recognised demands of that transition and the need for a skills system that can deliver the long-term success for our economy and communities. It’s crucial that we can swiftly adapt to best support the needs of local businesses and emerging sectors. But also to continue to create jobs, nurture career progression and provide all our citizens with fulfilling opportunities.
“The OECD report is an important step in the City Region’s continuing transition, providing us with the evidence of the critical role we play in the economic success of our communities. We look forward to discussing the recommendations in our engagements with Government and national agencies.”
Nadim Ahmad, Deputy Director, OECD Centre for Entrepreneurship, SMEs, Regions and Cities said:
“Labour markets everywhere are undergoing significant change in response to technological, societal, demographic and geopolitical shifts. But while those megatrends are largely global, as our report shows, addressing the challenges and leveraging opportunities to future-proof skills systems, cannot be achieved without local actions and local actors, such as Glasgow City Region and its eight Local Authorities. Effective multi-level governance and stakeholder engagement, that capitalise on local assets are strengths are crucial, and the OECD is delighted that our work with the Glasgow City Region and JPMorganChase has identified a number of areas and actions that build on those strengths to improve labour market outcomes today and in the future. Indeed, we stand ready to continue to support Glasgow City Region and other regions in their endeavors to create better policies for better lives”.
Mark Napier, Managing Director, Head of International Private Bank Technology, JPMorganChase said:
“We are proud to collaborate with the OECD, Glasgow City Region and our non-profit partners to design and deliver upskilling and employability programmes in Glasgow. Over the last five years we have invested nearly £3 million in philanthropic support which has helped connect young people and underserved communities to economic opportunities in Scotland. As our firm continues to grow in the region and we remain a major employer in Scotland, we are committed to continue working together to identify new opportunities for investment and impact in local communities.”
Underpinned by an in-depth analysis of Glasgow City Region and drawing on insights from other OECD countries and regions, a number of recommendations are put forward to future-proof the Region’s skills system. These include:
Developing a new Regional model for skills planning, funding and delivery:
With the skills system in Scotland under review, the Region should work with the Scottish Government to explore the potential of a regional model for planning and delivery of continuous education and training, establishing a Regional Skills Board and using the Region’s Intelligence Hub to maintain an ongoing review of changing local employment and skills needs.
Reduce individual barriers to participation in re- and upskilling:
Financial incentives for adults to participate in re- and upskilling are limited in Scotland, and the Scottish career guidance system is fragmented and not linked to regional labour market intelligence. GCR could strengthen career guidance for adults by mapping and better connecting various providers and developing bespoke career guidance material building on local labour market intelligence.
Strengthen local and Regional partnerships and improve collaboration with the third sector:
Local Authorities operate alongside Jobcentre Plus offices overseen by the UK Department of Work and Pensions. While stakeholders find ways to cooperate across the two systems, stronger cooperation at the operational level is needed to align and optimise services to overlapping target groups. A new institutional arrangement could be found through further devolution from the UK to the Scottish Government, following trends in many recent and ongoing reforms of Public Employment Services in other OECD countries.
Streamline referral systems, invest in targeted outreach measures and strengthen data sharing across stakeholders: Building on ongoing efforts, Local Authorities in GCR could seek to simplify and streamline entry points and client referral routes and ensure all clients are registered in the Management Information System of the council where they reside. In addition, available data could be used more strategically by councils to inform programme design, target interventions and guide outreach activities. Measures to facilitate data exchange across stakeholders (e.g. Local Authorities, third-sector organisations, Skills Development Scotland and Jobcentre Plus Offices) could also be developed.
Further integrate employability, skills, health and other services and strengthen investment in and delivery of basic skills: Given the rapidly changing skills requirements in the labour market and a growing share of economically inactive and long-term unemployed with complex needs (e.g., with long-term sicknesses or disabilities), there is a strong case for integrating employability services with other services provided locally, including skills, health and mental health services. This work could build on existing connections between councils and the Scottish National Health Service and ongoing work to build local Employability Hubs.
Develop an integrated approach to youth career guidance in the Region:
The career guidance system for youth is fragmented (multiple stakeholders with overlapping responsibilities and lack of clear referral routes). GCR could continue strengthening collaboration among the different types of career advisers in schools or consider options to simplify the existing system (e.g. by integrating different advisor roles under the same organisation). In addition, collaboration between schools, colleges and universities could be strengthened to facilitate transitions into further and higher education.
Establish a one-stop-shop solution for youth not in employment, education, or training (NEETs). Local authorities in GCR could seek to bring together various stakeholders to provide youth support services in a new one-stop-shop youth facility, centralising around the Keyworker model used to deliver employability services. This facility could integrate services for NEETs.
A copy of the report, Future-Proofing the Skills System in Glasgow City Region is available from the OECD website
