Labour Market Strategy
Human Capability Framework
This framework provides a way of looking at the skills and abilities of New Zealand people, and how these can be used successfully to generate income and promote an inclusive and thriving community and economy.
The Human Capability Framework was developed the Department of Labour, and has become central to the achievement of the Government’s goals in the labour area. It emphasises the need to consider the factors that influence labour market outcomes in an integrated way, and demonstrates the linkages between the work of the Department’s Services.
The Human Capability Framework consists of three elements – capacity, opportunity, and the process by which these are matched.
This refers to peoples’ skills, knowledge and attitudes, including any ability to do something, such as care for children or speak in public. These abilities are both innate and learned, with learning taking place in a multitude of situations - on the marae, in the home and in formal learning environments.<
Places where people can utilise their capacity - their skills, knowledge and attitudes - to generate income and other rewards. Many of these opportunities are in the labour market in the form of paid work. However, the framework recognises that non labour market opportunities are also important, and will use peoples' capacity in ways which contribute to society. The Opportunities that are available are influenced by entrepreneurial atitudes, innovation, the international environment, technology, the business and regulatory environments, finance and capital and consumer preferences.
Matching Capacity with Opportunities
All the processes involved in connecting peoples’ abilities to opportunities. These processes include rewards for skills, safety nets, rules around contracting, problem-resolution systems, immigration policies and information that helps people make informed choices.
The capacity of New Zealand people and the labour market opportunities influence each other. The types and volume of opportunities are constrained by the existing capacity of the population and surpluses and shortages of opportunities send signals on skill areas where capacity needs to be increased or decreased.