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 Trobe
Senior Manager, Special Projects
Brotherhood of St Laurence, Melbourne Australia
Jim Williamson
Assistance from:
Community Services, Bruce Hart - Reflective Practice BSL
Employment 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
An inclusive
society
A compassionate
and just society
Connected
communities
A sustainable
society
BSL Scope of Works
Public Policy
Research Program
• Extensive program with 25 researchers
• AUD$5million annually
Provision of
Services
• Community services, employment and
training, aged care $50M annually
• Service development, innovation and
delivery
Advocacy and
Influencing
• New policies, new programs and
practices
• Partnerships and implementation by
government and others.
BSL Strategic Framework
4 key life transitions
Early years and
Families
School to Work
Transition
In and Out of Work
Ageing
Cross cutting
priorities
Indigenous
Australians
Refugees and
Immigrants
Social and Financial
Inclusion
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
Learning By
Doing
Confidence and
Motivation
Social Inclusion
Technical Skills
Business
Experience
(Sen 1997)
Program Results
Program
Total
Nos
Trainees Completion or Net Cost excl salary per
in Training Still (%)
commencement
Concierge
89
67%
$25K AUD
Cleaning
35
54%
$15K
Goodbye Graffiti
12
75%
$45K
Dairy
26
70%
$10K
Total 2006 -2010
162
65% (105) tbc
$52,500 incl salary
Other Success Factors
 Effective Business Management
 Skilled Network Brokerage
 Planning
 Implementation
 Financials
 Evaluation
Skilled Networking Brokerage
Business
Demand
Government
Funding
Community
Engagement
Nettle et al 2008
Public Finance Implications
Budget
Policy
Program
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
CEDEFOP 2010
• more is needed
than program
responses alone
Perkins 2007
• better knowledge of
local labour markets
and
• increased employer
engagement.
Any questions
Please visit the Brotherhood of
Laurence next time you visit
Melbourne Australie
www.bsl.org.au