APPENDIX 2
Memorandum from Fife Council (JG 4)
1. There are many reasons for geographical
jobs gaps ranging from structural changes in industry, aspirations
in different communities for work that is no longer available
and inappropriate training delivery which is not linked to the
labour marked.
Fife is an area which has experienced relatively
high unemployment over the long term, suggesting that the unemployment
is structural rather than cyclical. Unemployment in Fife has been
above the Scottish average since the mid 1980's. It is of particular
concern that there has been a divergence between the Fife and
the Scottish/Great Britain rates since November 1997. In this
context considerable attention in Fife has been focussed on the
apparent jobs gap which is here defined as unemployment which
is hidden from the official claimant count.
The existence of hidden unemployment is viewed
with concern since research would seem to suggest that real unemployment
levels in industrial areas such as Fife are considerably above
the claimant count unemployment levels. National research by Sheffield
Hallam University (March 1997) attempted to calculate the extent
of hidden unemployment across the regions of Britain. The research
showed that in Fife's cases as at January 1997 the real unemployment
level in Fife was estimated at equivalent to 30,100 persons (an
unemployment rate of 17.4 per cent) compared to the official claimant
count of 13,467 persons (an unemployment rate of 8.4 per cent).
Whilst it is difficult to verify such estimates locally (without
extensive survey work) anecdotal evidence suggests that areas
such as Fife, experiencing major industrial restructuring, are
characterised by significant levels of hidden unemployment. High
levels of both claimant count and hidden unemployment are indicative
of barriers to work.
2. The groups which are most affected are
the low skilled, older workers and those with a low level of basic
skills including literacy and numeracy problems along with those
who do not have a high level of social and communication skills.
3. The official statistical information
provided nationally is definitely of benefit but needs to be combined
with an effective local labour market system from which information
is extracted and disseminated in a meaningful way to guidance
agencies and training organisations to impact on their delivery
of services.
4. In relation to the impact of supply-side
policies such as the New Deal it is crucial that at a local level
all delivery options are co-ordinated through partnership working
to ensure that training is linked to labour market needs and that
clients progress through training to sustainable employment. The
Jobs Option obviously plays a vital role linked to an employer's
labour requirements while ensuring clients receive training in
specific areas of work in demand in the labour market.
It is crucial that the outcomes of training
are monitored closely to ensure employment is not only gained
but is sustained.
5. In Fife the delivery of effective training
and support to clients is seen as an important element of the
overall strategy of overcoming social inclusion through a range
of service delivery from support in the community through guidance
and training to employment. This is combined with a strategy which
aims to encourage inward investment, business start up and business
development in order to increase the number of employment opportunities
in the area. It is crucial that both areas work closely together
to ensure success and to decrease any jobs gap which exists. Some
good local examples are as follows.
(i) The delivery of training within a strategic
framework devised by a range of crucial players within the training
field in Fife. The Vocational Education and Training Strategy
Group was set up three years ago to create a strategic overview
of all training delivery in order to maximise delivery to the
benefit of local communities. This group is composed of representatives
from the Council, the Colleges, employers organisations, the Enterprise
Company and the Employment Service.
(ii) The above group established a Labour
Market Information Group in order to examine ways of improving
the co-ordination and quality of labour market information in
Fife. This was one of its main strategic aims. Accurate and up-to-date
information on the local labour market was seen as vital to the
effectiveness of supply side measures ranging from careers advice
to the provision of vocational training.
The outcome of the work of this group
has been to establish a major rolling survey of local companies,
eliciting information about their workforce; recruitment trends;
skill shortages experienced; training needs; and training activity.
The survey is carried out quarterly and in the course of one year
covers 1,000 companies. The questionnaire and sampling techniques
for the survey were developed for the LMI group through a commissioned
consultancy project. The survey was piloted in December 1998 and
two further quarters' surveys have been conducted. A bulletin
analysing the results of each quarter survey is published. The
data is providing a valuable resource to partner organisations
in carrying out their respective advisory and training functions.
This will enable measures to be better targeted on actual skill
shortages and employment opportunities in the local economy. The
LMI service has been developed with the assistance of EU funding
and has been highlighted by the East of Scotland European Partnership
as an example of good practice.
(iii) The development of specific localised
labour market agreements linking recruitment and training for
unemployed clients to specific newly created jobs (used within
the Retail and Care sectors). This benefits both the clients who
know they are training for specific employment opportunities and
the employer who has clients trained to their specific requirements.
(iv) Customised Training for Work delivery
linked to employer specific needs.
(v) The development of Opportunity Centres
throughout Fife which bring together all Council Services within
the area of guidance, training and employment along with the Careers
Company, Colleges, private training providers and the Employment
Service to deliver a co-ordinated range of services within a one-stop-shop
environment to all clients within local communities. This initiative
allows easy access to all services and capitalises on the expertise
of all the staff from the different organisations to the benefit
of the public and avoids overlap in relation to service delivery
thereby maximising the use of all resources.
Fife Council
September 1999
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