Evaluation of the Labour Market Activation Fund 2010 Presentation to ESF Evaluation Partnership Thursday 15 March 2012 Evaluation of the Labour Market Activation Fund 2010

The priority groups of unemployed Low-skilled, particularly those with qualifications below NFQ level 5 Those who previously worked in declining sectors such as construction, manufacturing and retail Those aged under 35 Those over three months unemployed

Labour Market Activation Fund, 2010 Original Budget 2010 - €20 million Additional €12.043 million in August 2010 Total Fund of €32.043 million Target to deliver training and education for 12,000 unemployed people, between June 2010 and end June 2011

Objectives of the Activation Fund to seek and support new and innovative ways to deliver upskilling and re-skilling for the unemployed, in addition to mainstream provision to use competitive tendering to drive efficiency and to maximise the benefit for public funds to derive learning for the development and delivery of future activation initiatives

The 55 Projects selected because of potential capacity to deliver achievable, quality outcomes leading to progression to employment or to educational attainment connected with labour market opportunity for participants covered a broad spectrum of activities and offered qualifications from NFQ levels 3 to 8 projects targeted skills needs in strategically important sectors of the Irish economy – food; sustainable energy; pharmaceutical manufacturing; financial services, digital media; and tourism.

Headline Findings of the Evaluation LMAF 2010 supported a multi-provider model of delivery with programmes designed to facilitate a progression pathway to the labour market Participant recruitment and completion rates show that the LMAF 2010 was delivered efficiently, effectively and cost-competitively There is substantial evidence of positive outcomes and impacts Learning can be drawn from the innovative approaches employed across LMAF projects The LMAF experience provides the basis for an effective future labour market activation model

Attributes of LMAF Programme Activity Consultants found that, taken together, the LMAF programmes incorporated different stages along the progression pathway to activation, including Capacity building and support Core skills development Facilitating access to further education opportunities Offering a formal education platform Building entrepreneurial ability Industry focused upskilling and reskilling Direct engagement with employers Recognised qualifications by accredited providers

Findings of Evaluation contd. LMAF 2010 – a Progression Pathway Model

Key metrics 12,629 participants (of whom 80% completed), supported in 55 projects, delivered by 44 organisations, costing €29.5 million Per capita cost of participant completion was considered favourable.

Outcomes for participants Of the 10,163 participants completing in the period December 2010 to June 2011, outcomes were known for 5,361: 1,533 (29%) got jobs 732 (14%) became self-employed 2,277 (42%) went on to further courses 819 (15%) remained unemployed .

Outcomes for other stakeholders Employers – flexibility of projects in response to skills needs, and ‘trialling’ of work placements as potential employees Economy – employment impact generated a gross income effect of between €31.5m and €54.1m Exchequer - savings of between €12m and €21m on welfare payments.

Distribution of Funding – by Type of Provision

Cost Comparisons There were positive findings on value-for-money in LMAF 2010 programmes.

Innovation and best practice Fund was innovative in that it was open to all providers to compete on an equal footing varying degrees of innovation in programme design, content and delivery were noted; greater innovation in the private sector, less so in the third level sector Substantial case studies of selected projects illustrate innovation and best practice with the potential for mainstreaming

Major success factors The most successful programmes were those which were collaborative and focused on clear progression outcomes. Collaboration involving education and training providers, the VECs, colleges, business organisations (e.g., Chambers of Commerce), community organisations, local authorities, the Department of Social Protection and other relevant organisations (e.g., the CEBs). Outcomes driven Participant-centred identification and assessment of need, provision of programmes meeting these needs matching them to specific skills demands and opportunities in particular local contexts or sectors.

Principles for a successful model of labour market activation Verified by DSP, employers & other stakeholders Must be tailored to local skills needs and unemployment characteristics Work Clear idea of the progression outcome & pathway to work Flexibility to respond to market needs with short Core skills building must be followed by employable skills Public, private C&V providers involved to meet needs Clear central source of information on opportunities eligibility & benefits Clear single access point for individuals Support Multi-provider Pathway focus Flexibility Funded on competitive basis where evidence of need is clear Collaborative Progression Competitive Local solution Ongoing monitoring & support to ensure sustainability Access Information Engagement Outcomes Delivery Establish need LMAF Community based support to facilitate engagement Work placement Monitoring turnaround for accredited provision experience to improve employability & engage local employers Four principles are: Establish Need Engage Deliver Focus Outcomes ·

Conclusions of Evaluation There is strong case for continuing the Labour Market Activation Fund model, retaining a competitive approach to selecting and funding projects A multi-annual approach to funding should be considered to maximise the impact of interventions, and their sustainability To ensure a comprehensive approach to meeting particular labour market activation needs, consider allocating future funding to dedicated theme-based streams, with a core focus on provision at NFQ levels 3 to 6

Conclusions of Evaluation contd. While retaining a multi-provider, multi-tier activation model, consider if project providers should have to progress through a pre-qualification stage Prioritise programmes that adhere to the four principles of the successful activation model Necessity for a cohesive communication strategy for engaging with participants at the outset of labour market interventions

Conclusions of Evaluation contd. require consistent and sustained recording and reporting of participant destinations post-funding and post-project to ensure that the full value of the public investment is assessed establish shared databases across the relevant agencies to track the progress of participants along the progression pathway consider piloting an outcomes-based funding model within any future Fund where project providers are rewarded on the basis of meeting specified outcomes

Conclusions of Evaluation contd. Devise an action plan for mainstreaming learning from Activation Fund projects into wider labour market activation policy and interventions.

Evaluation of the Labour Market Activation Fund 2010 Presentation to ESF Evaluation Partnership Thursday 15th March, 2012 Evaluation of the Labour Market Activation Fund 2010 William Mc Intosh Head of ESF Managing Authority, Department of Education & Skills, Room 116, Block 2, Marlborough Street, Dublin, 1. +353 1 889 2155 willie_mcintosh@education.gov.ie http://www.esf.ie

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