Taking A New Line New Welfare Implications of a Capability Based Approach to Reconnecting High Disadvantage Job Seekers to the Mainstream Economy Jim.

Taking A New Line

New Welfare Implications of a Capability Based Approach to Reconnecting High Disadvantage

Job Seekers to the Mainstream Economy

Jim Williamson

BA Melb, MEd La TrobeSenior Manager, Special ProjectsBrotherhood of St Laurence, Melbourne Australia

Jim Williamson

Assistance from:Community Services, Bruce Hart - Reflective Practice BSLEmployment and Training Staff BSL

Background:• Director, Public Policy Consulting Company• Senior Policy Officer,

Departments of Premier and Cabinet, Finance, Education• Lecturer - Education• Teacher – secondary Economics and English

Brotherhood of St Laurence (BSL) Priority Aims

BSL Scope of Works

BSL Strategic Framework

4 key life transitions Cross cutting priorities

Purposes

1. Describe Distinctive Elements of BSL community based Social Enterprises (SE) – Using Intermediate Labour Market (ILM) training strategies

– Assist High Disadvantaged (HD) job seekers into mainstream economy.

2. Assess the Effectiveness – Providing a Line of Sight (LOS) program

– Creating ongoing work for High Disadvantaged job seekers.

3. Discuss Public Finance Implications of LOS programs – Incorporating Social Enterprise and ILM design features.

Unemployment

Melbourne, Australia:

5%

Europe and US:

9%

Long Term Unemployed - Australia

July 2008 - 60,600 July 2010 -106,700

BSL Social Enterprises

Intermediate Labour Market

– Concierge and information service on High Rise Public Housing

– Cleaning service– Graffiti Removal– Regional Dairy Farm Hand

Assistants

Intermediate Labour Market

Design Features• Bridge to Ongoing Work• Paid work• Credential with Exchange

Value• Community Benefit

Marshall and Macfarlane 2000

Intermediate Labour Market

How BSL Adds Value• Prevocational Training

– to get HD Job Seeker Job Ready

• Additional Pathway Personal Support and Door opening

• Induction in Business Culture and Practices

Bowman and Souery 2010

Highly Disadvantaged Job Seeker Profile

• Unemployed longer than six months • Mix of personal and skills based obstacles• Low levels of literacy and numeracy• Male and Female• Younger and older• Indigenous and

new arrivals

Perkins 2007

Generic Capabilities

Responses to 10 Penalties of Unemployment

(Sen 1997)

Program Results

Other Success Factors

Effective Business Management

Skilled Network Brokerage

Planning

Implementation

Financials

Evaluation

Skilled Networking Brokerage

Nettle et al 2008

Public Finance Implications

Positive Program Implications

• Capability Approach – responding to classic problems for HD job seekers has

produced strong results

• Participants - very positive about support• Research concludes support needs to be before,

during and after program• Importance of small teams and specialized staff• Employers Positive• Place and train

Program Negatives

• Comparatively high cost per outcome – $10K for dairy …

• Perennial issue of Productivity Discount (PD)– incurred by Job Seekers and Business

• PD estimated at 25% below comparable market businesses

Policy Implications

• Scaling up of these LOS, SE,ILMs warranted• Do have direct relevance to Australia

– dealing with ageing population and – relatively low unemployment

• Australia has performed relatively well – compared with Europe and America – in terms of unemployment and growth

(5% cf 9%plus)

Policy Implications (2)

costs/benefits• $1:$14 AUD • Return On Investment

(ROI) for Intermediate Labour Market programs

Mestan and Scutella 2007

Budget Implications of Up scaling

• Annual unemployment benefits payments – for 10,000 Long term Unemployed – $150M AUD annually (approximately )

• Hypothecation of benefit into LOS/ILM/SE – could be fostered with accredited agencies – eg local government, larger businesses, community

agencies.

Budget Implications of Up scaling (2)

• Assuming 50% success (BSL closer to 2/3), – would achieve annual savings of $75m on

• job support outlays and • job search payments.

• Would deliver increased income and tax contributions – assuming $1:$4 ROI,

ie low end of scale of $300M

Conclusion

Any questions

Please visit the Brotherhood of Laurence next time you visit

Melbourne Australie www.bsl.org.au