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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
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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
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Brotherhood of St Laurence (BSL) Priority Aims
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BSL Scope of Works
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BSL Strategic Framework
4 key life transitions Cross cutting priorities
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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.
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Unemployment
Melbourne, Australia:
5%
Europe and US:
9%
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Long Term Unemployed - Australia
July 2008 - 60,600 July 2010 -106,700
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BSL Social Enterprises
Intermediate Labour Market
– Concierge and information service on High Rise Public Housing
– Cleaning service– Graffiti Removal– Regional Dairy Farm Hand
Assistants
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Intermediate Labour Market
Design Features• Bridge to Ongoing Work• Paid work• Credential with Exchange
Value• Community Benefit
Marshall and Macfarlane 2000
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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
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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
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Generic Capabilities
Responses to 10 Penalties of Unemployment
(Sen 1997)
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Program Results
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Other Success Factors
Effective Business Management
Skilled Network Brokerage
Planning
Implementation
Financials
Evaluation
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Skilled Networking Brokerage
Nettle et al 2008
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Public Finance Implications
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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
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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
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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)
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Policy Implications (2)
costs/benefits• $1:$14 AUD • Return On Investment
(ROI) for Intermediate Labour Market programs
Mestan and Scutella 2007
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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.
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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
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Conclusion
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Any questions
Please visit the Brotherhood of Laurence next time you visit
Melbourne Australie www.bsl.org.au