Employment in Local Industry (ELI)

Countries

Spain

Policy areas

Organisation name Diputaci— de Barcelona

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Contact person: Silvia Girones

gironescs@diba.cat

For decades, employment promotion policies focused exclusively on the unemployed and on vulnerable groups as regards gender, age and time unemployed. The most usual actions tend to be aimed at improving their employability and empowerment (career guidance, job-seeking techniques, occupational training). Most of these actions do not tend to include the labour needs of the productive fabric or local territorial particularities. There is currently an asymmetry in the labour market with a high level of unemployment and precarious working conditions (temporary work, low salaries) and an uncovered demand by companies for professional profiles. This situation is acute in industry, especially in jobs linked to scientific, technological and digital transformation.

To confront this situation, in 2015 Barcelona Provincial Council (BPC) created the ‘Employment in Local Industry’ (ELI) programme. This programme aimed to reduce the imbalance between supply and demand of labour in local industry, through a paradigm shift in the conceptualisation and design of policies. The purpose is to promote employment, addressing this problem from a perspective of economic, social and sustainable development of the local territorial environments, respecting their particularities and differentiating their needs. It is a local policy which strategically and complementarily aligns the characteristics of the:

  1. industrial productive model (supply of labour);
  2. human capital and talent (demand for labour);
  3. territory where there is an intersection between demand and supply.

In short, the concept of employment promotion policy becomes one of labour market policy.

When the programme was first considered in 2013, unemployment in Catalonia was 21.87 %, and 48.92 % for people between the ages of 16 and 24. The only sector which appeared to be maintaining existing establishments, turnover and workforce was industry.

A project had to be devised, which also takes into account the framework of powers of the local administration in the sphere of employment. This includes the diversity existing in the organisational dependence of various local departments (employment, business, education, social affairs), without an integrated system of formal compulsory and post-compulsory vocational and occupational training, with early school leaving figures of 17 %. The majority of companies also had certain characteristics:

  • SMEs with a limited ability to train employees, a high number of businesspeople and workers retiring in the coming years, under 2 % investment in RDI;
  • declining numbers of people studying for technical professions;
  • women under-represented in executive and technical positions and, in general, throughout industry;
  • the proportion of people with compulsory education 36 %, vocational training 23 % and university education 41 % not adapted to the needs of companies.

The first step was to analyse sources of information, to interview professionals and academics from the industrial sector and to hold meetings to contrast and exchange opinions with local experts from the province’s town councils. It was a question of optimising the coordination of the project’s strategic lines to provide an optimal response to the objective pursued, guaranteeing sufficient flexibility for each territorial environment to adapt its own actions.

BPC is an institution which promotes the progress and welfare of citizens within its territorial sphere – Barcelona province – a network of 311 municipalities, representing 24 % of the total area of Catalonia and 74.4 % of the total Catalan population. It acts directly, providing services and, above all, in cooperation with councils.

The BPC area managing the ELI programme is the Labour Market Service (LMS). The LMS mission is to promote efficiency and foster the innovation of the local public employment system, favouring dynamism, sustainability and adaptation to the territorial structure of the labour market. The service offers local bodies technical and economic support to contribute to reducing unemployment rates, fostering stable recruitment and adapting to the socio-economic situation.

The LMS is aligned with European, state and regional strategy on promotion of the industrial sector. In 2014, the industrial sector began to be positioned at the base of a new productive model. On the European level, The Europe 2020 strategy for growth was disseminated, on a state level the Agenda for Strengthening the Industrial Sector in Spain was established and on a regional level, ‘Industrial Catalonia: a shared objective’ and the RIS3CAT strategy were published.

ELI forms part of the BPC action plan for 2012–15 and 2016–19, specifically the strategic objective of promoting the local productive structure and supporting employment, and the strategic project Connecting Citizens with Future Opportunities. BPC has likewise accepted as its own the Sustainable Development Goals of the 2030 Agenda adopted by the United Nations in 2015. The programme comes within SDG 8: ‘Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all’, and 9: ‘Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.’

As well as a technical commitment, this programme is also a financial commitment of BPC, since it has co-financed 75 % of the cost of the projects from its own budget. The programme has been renewed with three consecutive editions, the last call being allocated double the budget, going from €2 million to €4 million.

Some territories have participated in the programme since 2015, and each year expressly declare the need to continue to implement projects of this type, which require the creation of partnerships and cooperation between the public and private sector. This allows the actions to be made flexible depending on the economic situation of companies, evolution of technology and characteristics of people looking for work, which require medium and long-term planning to become consolidated.

Each of the project’s actions has succeeded in developing the loyalty of companies and people, who repeat their participation in different calls on observing their use. More generally, the programme adapts to the challenges of international, national and regional agendas, and receives support and recognition from prestigious professionals and academics.

The project can be transferred and applied in other areas of the country. This is supported by the good results obtained in Barcelona province since 2015 and by the scalability of actions which have been shared and implemented jointly by several participating projects. As a result of the continuous assessment which has been carried out and the teams’ experience a series of recommendations is offered to design similar actions and increase possibilities of success:

  • It is important that the promotion and leadership of the projects by the local public bodies, in view of their proximity to people and knowledge of the reality of the environment.
  • Financial sustainability needs to be achieved outside the political cycle, since the results are in the medium and long term, and it is highly recommended that the calls be multiannual.
  • It would be appropriate for the experts assigned to the management and implementation to have contractual stability beyond the duration of each call.
  • The project’s work dynamics encourages cooperation between different departments which come together with a shared objective, entailing the establishment of coordination protocols which tend to create a precedent.
  • It is essential to include both public and private actors from the territory to implement the project.
  • The capacity to adapt to changing environments is established, connecting the local administration to people, companies and actors from the territory.
  • The private sector must be involved starting from the conceptualisation of the project and throughout its development. Companies must participate in the detection of needs for professional profiles and in the preparation of training content.
  • Cooperation among the actors involved is encouraged, helping to create synergies which go beyond the project.
  • Make the successes obtained visible by all means possible and especially design a communication strategy intended for elected political representatives.

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