Paul Convery Director Unemployment Unit & Youthaid, London SCVO, Glasgow, June 22nd 2000 New Deal performance: improvement and re-design

Is New Deal under-achieving? þNew Deal sustained job entry rates: averaging 33% (GB) þDelivery Unit variations - from 50% highest sustained entry rate to 22% lowest þND for 25+ only achieving 10% job entry þND for lone parents: 33% job entry þ"Jobs first": over-strong emphasis on job submission - 42% of job starts are for work that is not sustained for more than 13 weeks (19% not sustained rate even on employer option)

Is New Deal under-achieving? þThe "Disappeared": a third of leavers (cumulative 93,600 by March 2000) are still unaccounted for þOptions are not popular: 60% of all job entrants are from Gateway after interview; only 12% of job entrants come from Options þSanctions numbers rising from 650 in Q to 5,000 in Q þSanctions data shows some options are clearly unpopular e.g. one fifth of ETF participants get sanctioned (41% in West Midlands)

The “disappeared” þNCRS survey found - on leaving New Deal - 57% had entered a job (compares with entry rate amongst those with known destinations of 77%). þbut majority had not ended up in sustained work - by the time of survey: –55% were unemployed (¾ were claiming JSA) –29% were in paid work þ81% of unemployed were still looking for work þ"unknown destination" leavers drawn from a more disadvantaged and more vulnerable groups

Improving Gateway þbetter identification and diagnosis (client profiling), improved case management and counselling; þbetter measurement of progress and achievement; þreplicate workplace cultures: expectations of punctuality, attendance and effort; þstronger development of participants’ interpersonal and communication skills; þsectoral gateways and employer sponsorship

Improving placement þIntegration with “normal” job broking; þidentify skills required in growth potential industries and occupations; þonly refer those with realistic chance of meeting an employer’s specification; þspecial packages for the most disadvantaged; þcombat low attraction of low paid, low quality jobs or where employment is not sustainable; þbetter preparation of participants on what to expect from a job.

Working smarter with employers þvacancy taking staff and PA need to understand employer's business and "sell" clients þmaintain communication between PA, employee and employer after the placement has been made; þpost-placement services for participant/employer; þemployers should offer structured introduction to work; mentoring; performance appraisals and help; training to support career advancement; þinter-firm/supply chain collaboration.

Improving options þenriching the offers - more option tasters, intensive activity and services; þmix, match and blend the options; þspecialist support services provided in the Gateway should continue as part of an option; þ"soft skills" integrated into all options; þnon employer options need increased relevance and connections with the labour market; þILMs have better retention rates for the most disadvantaged.

Improving the Employment Service þreduce PA caseloads and maximise time spent with individuals and employers; þreduce the 30% administration "overhead"; þreduce PA turnover and improve advisor management þES contracting: needs fewer & better providers with realistic volumes þrevise ES APA - crude job placement targets have previously ignored retention (APA 2000/01 will pilot a retention target)

New Deal 2002 þMore emphasis on non-JSA claimant population; þHigher performance “demand-led” intermediaries; þIntegrating all New Deals into a single programme; þStronger geographical focus; þMore linkage with enterprise and regeneration initiatives and European funding; þFunding flexibility - the Personal Job Account

Internet sources: Unemployment Unit & Youthaid New Deal briefings, innovation, talks, articles, performance data, advice & information for participants: Copy of this presentation: