Understanding the benefits, costs and funding flows to tailored jobseeker supports

While the evidence of the benefits associated with sustained employment is well established, the understanding of the level and targeting of investment required to unlock these benefits is generally accepted as being less clear.

This research explores the benefits, costs and funding flows of different models of job seeker supports. It summarises and contributes to the evidence base on different models of employment support. Synthesising existing research and case studies from for-purpose organisations it demonstrates the costs and benefits associated with tailored models of support to specific cohorts outside of the mainstream employment service system. 

Focusing on the lessons that can be learned from for-purpose organisations’ employment support programs, this report sets out:

• the current nature and funding of supports
• what works in which contexts – synthesising academic literature to understand which support models and combinations of support are generally found to be effective, noting different cohorts and implementation contexts (and varying levels of available evidence on impact).
• the benefits associated with achieving quality outcomes – comprising estimates from academic literature and public research on the economic and social returns to sustained employment for individuals, their families, communities and governments.
• The range of costs of delivering tailored employment programs – drawing on estimated costs associated with programs delivered by 10 partner organisations of the Paul Ramsay Foundation, this report provides an approach to estimate the range of costs associated with delivering employment programs.

The cost framework in this report and the accompanying data tool is designed to enable and encourage organisations (with support from government, funders and other well-positioned parties) to invest in tracking and understanding their costs and outcomes over time.

Key findings

• Transitions to employment can change an individuals’ economic trajectory.
• The economic benefits of employment can extend across generations.
• The duration of employment reduces an individuals’ likelihood of re-entering unemployment in the future.
• Outcomes measurement associated with cohorts facing complex barriers to work must take a long-term view.
• Sustainable employment transitions are critical to unlocking many of the economic and social benefits of employment.
• Tailored employment supports are effective when they can address participants’ specific needs.
• Costs associated with delivering tailored employment programs can be material, and range considerably.
• It is possible and meaningful to estimate costs at the participant and outcome level in the for-purpose employment sector.