Harnessing growth sectors for poverty reduction: what works to reduce poverty through sustainable employment with opportunities for progression

Traditionally employment has been seen as a key route out of poverty. People in employment are less likely to be in poverty than those without paid work but the benefits of entry into employment where pay is low are questionable, especially if they form part of a 'no pay, low pay cycle'. For poverty reduction a focus solely on moving into work is insufficient.

In-work poverty has become an increasingly important issue as labour market changes have led to changing working practices (e.g. fragmentation of working hours and zero hours contacts, etc) and a broader polarisation between lower paid and higher paid jobs which impedes progression in employment as a route out of poverty. More 'good' jobs are needed that poor people can access and progress in if more sustainable exits from poverty are to be achieved.

Following the economic crisis of 2008/9 there has been a renewed interest in industrial policy in attempts to stimulate economic growth. Governments have identified specific sectors (so called 'growth sectors' or 'strategic sectors') as a focus of policy attention. The proposed research seeks to fill a gap in evidence about 'what works' in harnessing growth sectors for poverty reduction - in recognition that growth sectors: (1) generate opportunities for those out of work to move into; (2) are the focus of policy to support the growth of opportunity; (3) are more likely to experience skills deficiencies, so encouraging engagement with skills and training providers; and (4) may be seeking to reduce staff turnover through developing more clearly defined progression opportunities. Hence the research addresses two of the Welsh Government's strategic priorities: (i) tackling poverty and (ii) promoting jobs and growth.

The proposed research focus consists of four elements which together synthesise and assess evidence on how growth sectors may be used for poverty reduction.

Element I provides contextual and quantitative analyses of growth sectors. It identifies growth sectors, the number and profile of jobs therein and their growth trajectories. It uses existing large survey data sets to examine how people move between and within growth sectors, and whether and how such moves help people to move out of poverty. It also identifies which sectors offer the best opportunities for progression out of poverty.

Element II focuses on reviews of the existing national and international evidence on 'what works' in helping poor people gain entry to growth sectors and how their employment progression can be facilitated. It also examines evidence on how job quality in growth sectors can be enhanced. 'Good practice' examples of relevance to the Welsh context will be identified.

Element III involves six in-depth case studies of practical initiatives to harness growth sectors for poverty reduction. A mix of 'top-down' approaches driven by national governments and 'bottom-up' approaches led by local authorities and groups of employers in particular sectors will be examined.

Element IV brings together and tests the findings of the research, emphasising what policy levers are available for harnessing growth sectors for poverty reduction, and how they might be best used. Stakeholders will be invited to participate in this process of knowledge generation and transfer at workshops held in different parts of Wales in an attempt to maximise the applicability of the 'what works' findings to the Welsh context.

Together the different elements of the research project, involving secondary data analysis, evidence reviews and case studies, will address gaps in:
- existing knowledge on job mobility and poverty;
- interventions to support entry to, progression, and job quality in growth sectors; and
- how public policy can address poverty by facilitating sustainable employment in growth sectors.

The potential impact of the proposed research is far reaching. The insights generated will directly benefit strategic and operational policy making and service delivery in the public, private and third sectors. It will help stakeholders to devise and refine policy approaches targeted at poverty reduction. Most importantly, the final beneficiaries of the research are people who move out of poverty as a result of improvements in opportunities stemming for evidence-based policymaking. If growth sectors can be harnessed more effectively for the reduction of poverty as well as for economic growth this will benefit the economy and society more broadly.

More specifically, the list below indicates who benefits and how they benefit:
1. Strategic policy makers in government and government agencies at sub-national and national scales - New evidence produced on the scale, intensity and patterns of labour mobility by sector will enhance understanding of labour market dynamics as they relate to poverty reduction and should help inform more nuanced targeting of policy to promote sustainable employment in 'good' jobs. A comprehensive evidence base of 'what works' around getting individuals into employment in growth sectors, supporting progression and raising job quality will enable policymakers to intelligently design and target sector-based policies that are most likely to reduce poverty.
2. Service deliverers in public, private and third sector organisations - The marshalling of the evidence on 'what works' in linking people to the labour market, facilitating progression in the labour market and raising the quality of jobs, together with detailed information on different approaches and their strengths and weaknesses as well as challenges and opportunities faced in implementing interventions will help inform and refine approaches to service delivery.
3. Sectoral bodies - The research is intended to complement existing information and intelligence, and provide insights into, and experience of, the challenges and opportunities for different approaches to integrating social inclusion and economic growth agendas.
4. Employers and employers' organisations: The evidence reviews and detailed case studies will provide learning opportunities for advancing the employer ownership of skills agenda and for how it might be better linked to wider welfare concerns.
5. Workforce development organisations: The evidence generated by the research will be helpful in informing and promoting workforce development strategies - in the interests of employees and employers.
6. Organisations concerned with poverty reduction and people in poverty - The new evidence generated and synthesised will helpf identify what sectors offer most opportunities for moves out of poverty through sustainable employment in 'good' jobs, and so help targeting of activity. People who move out of poverty are the key beneficiaries.
7. The wider public - The ultimate aim of harnessing growth sectors for poverty reduction is to improve the welfare and opportunities of those in poverty; meeting this aim should also improve societal well-being more widely.

The research team brings together experienced applied researchers with experience of working together and separately on projects for sponsors with interests in poverty, economic growth and the labour market - including the Joseph Rowntree Foundation, the UK Commission for Employment and Skills, the DWP, BIS, governments in the devolved nations, the European Commission and the OECD, local government, regional development agencies and third sector organisations. As such the research team is experienced in preparing and disseminating research findings to a range of audiences. For this project the reach in Wales will be extended through the involvement throughout the project of the Bevan Foundation and their leading role in ensuring integration of key stakeholders in the research and the effective dissemination of the results.