Active Labour Market policies for vulnerable groups an

Active Labour Market policies for vulnerable groups : an overview Professor Dan Finn, University of Portsmouth Associate Research Director, Centre for Economic and Social Inclusion

Context l l l European Employment Strategy: Employability, Social Inclusion and Economic Activity Rates Unemployment, ‘Worklessness’ and Economic Inactivity Impacts on poverty, ill health, youth disaffection, crime and family breakdown Impacts on Minority Ethnic Communities, new migrants and refugees Spatial variations and concentrations in cities where implementation tends to be weakest

Active Labour Market Programmes: What Works l l From ‘passive’ to ‘active’ strategies - commitments to provide ALMPs in the European Employment Strategy Four Basic ALMPs: l l l Job Search Requirements and Assistance Employment Subsidies Training and Education Work Experience Programmes Evaluation Evidence – ‘Net’ Impact Studies (compliance and treatment effects) and Implementation/Case Studies Most programmes work best for those who are relatively ‘job ready’. Most are least effective for the ‘hardest to help’ (basic skills, exoffenders; substance abuse; mental health problems).

Implementation l l l National Programmes & Local Flexibilities (national policies are only as good as their local delivery systems) ‘Joining Up’: barrier reduction and other support services (esp. basic skills, substance abuse reduction, child care, transport and easing transitions) Partnerships, with Economic Development, Employers, and Workforce Development Systems

The Demand Side: Understanding the Local Economy l l Labour Market Intelligence: the Jobs Available and Characteristics of Workless People The interaction with the ‘hidden’ or illegal economy The balance between job search assistance (turnover and new jobs) and employment creation (social economy & self employment) Even where there are jobs, other barriers on the demand side: l Direct and Indirect Discrimination (access to vacancies, informal networks and job specifications) l Location and transport (& links with other services, such as child care)

The Supply Side: Individual Employment Barriers l l l Job search: reduction in frequency, losing touch, perceptions of suitability and availability (mistrust of official agencies) ‘Employability’: basic skills & language, ‘job readiness’ and confidence, work experience, health, and accommodation Interaction between state benefits and work incentives (the role of ‘compulsion’) Financial and transition risks (especially debt) Particular problems facing new immigrants (e. g. restrictions on employment, transferability of skills)

No Simple Answers But Evidence Suggests l l l ‘Targeted’ Approaches: add value to mainstream programmes, esp. amongst the ‘hardest to reach’ (outreach important) Local coordination and cross referral to health and child/elder care services ‘Client centred’: assessment & profiling tools and ‘action plans’, esp. for those with multiple barriers ‘Realistic’ work experience: building bridges to local employers, use of subsidies, ‘local labour’ contract clauses Job search assistance: matching and ‘after care’ Making Work Pay and being seen to pay (support with ‘transition’ costs)

Measuring Impacts: Indicators l Definition: “Measurement of an objective to achieve, a resource mobilised, an output accomplished, an effect obtained or a context variable (economic, social or environmental) (source: EC, ‘Evaluating socioeconomic programmes’, vol 6, 1999) l l Quantitative and Qualitative Indicators used to measure facts or opinions (e. g. , % of trainees who get a job or who claim to be satisfied with their training) Must provide simple information that both the supplier and user can easily communicate and understand. Assists managers of public interventions to communicate, monitor and assess success. Indicator must be ‘sensitive’, in that the item measured must vary significantly in relationship to the intervention being assessed. Usually measured by means of surveys or statistical data (importance of monitoring systems)

Social Inclusion Indicators l l l Social exclusion – a multi dimensional and relative concept. Many definitions. In EU context most commonly interpreted as exclusion from the labour market; acute poverty and material deprivation; and to a lesser extent an inability to exercise basic social rights. Good Starting point is the common indicators identified by the EC Social Protection Committee at Laeken in 2001. Consisted of 18 indicators, 10 ‘primary’ and 8 ‘secondary’, spanning themes of income, employment, health and education. The employment related indicators included: l l Primary: ‘Long-term unemployment rate’, ‘People living in jobless households’ and ‘Regional Cohesion’ (coefficient of variation of employment rates) Secondary: ‘Long term unemployment share’; ‘Very long-term unemployment rate’

Measuring Employment Impacts l Impact Assessments (evidence base for original objectives): – Labour Market Activity l l l – Distance Travelled l l – l Job entries and sustainability (surveys and statistics) Self employment and other economic activity Income and income gain Barrier reduction (initial assessment and at leaving) Skills/qualifications gained Cost Benefit Analysis (savings and ‘net’ benefits/impacts) Learning the lessons – ensuring take up in mainstream provision