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Job Creation and Local Economic Development 2018

Preparing for the Future of Work

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This third edition of Job Creation and Local Economic Development examines the impact of technological progress on regional and local labour markets. It sheds light on widening regional gaps on job creation, workers education and skills, as well as inclusion in local economies. Drawing on new data, it examines the geographical distribution of the risk of automation and whether jobs lost to automation are compensated by the creation of jobs at lower risk of automation. Building on data from labour force surveys, the report looks at the rise of non-standard work, highlighting the main regional determinants of temporary jobs and self-employment. Finally, it considers determinants of productivity and inclusion in regional and local labour markets, as well as policies to foster greater inclusion of vulnerable groups into the labour market. Individual country profiles provide an overview of regional labour markets and, among other things, an assessment of the performance in terms of “quality” jobs created among different regions.

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Fostering social inclusion in local labour markets

As technological change seeks to improve productivity and also shapes the nature of work, challenges for inclusion in particular places will become even more important to address. This chapter first considers whether increasing labour productivity in certain regions and cities actually creates a trade-off with inclusion for their residents—with different measures indicating there is not necessarily a trade-off as many places achieve growth in both. It then considers tailored programmes that address the concerns of particular disadvantaged populations to provide the complementary policies needed to facilitate labour market inclusion, taking the example of Indigenous People. It further considers the under-utilised potential of the social economy and social enterprises to create employment that is inclusive, as such entities often target disadvantaged groups and have strong local roots.

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