13th Annual Meeting of the OECD LEED Forum on Partnerships and Local Development INCREASING PRODUCTIVITY, JOB CREATION AND INCLUSION FROM THE BOTTOM-UP 10th-11th April 2017 | Prague, Czech Republic

1. © Copyright 2017 – National Employment Services Association
INNOVATION IN PUBLIC EMPLOYMENT SERVICES
NEW WAYS TO IMPROVE JOB MATCHING
OECD LEED 13th Annual Meeting 10-11 April 2017 Prague Czech Republic

2. © Copyright 2017 – National Employment Services Association
Overview
• 26 Years of Economic Growth
• Two decades of fully out-sourced public employment services
• Major Employment Services programmes
• “jobactive” – mainstream Employment Services
• Streaming and Star Ratings
• Technological tools

3. © Copyright 2017 – National Employment Services Association
Australia - 26 Years of Economic Growth
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
-12%
-14%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GDP Growth (Australia against OECD, 1990-2014)
Australia’s last period of recession (1991)
Global Financial Crisis (2008)

4. © Copyright 2017 – National Employment Services Association
20yrs of fully out-sourced public Employment Services
1945 -1998: Australian Employment Services were administered by the
Federal Government’s “Commonwealth Employment Service (CES)”
1998: After probative testing in 1996-1997, all Employment Services were
contracted out to non-government organisations, both for-profit and not-
for-profit
Australia is the only country in the world with fully out-sourced public
employment services
The Federal Government manages procurement, and administers contracts
and regulatory frameworks
NESA, a not-for-profit organisation has been the peak body representing
Employment Services providers since 1997

5. © Copyright 2017 – National Employment Services Association
Major programmes
Mainstream
Employment
Services
Remote Australia
51 regions
44 providers
1701 sites
110 regions
99 providers
1747 sites
60 regions
42 providers
Caseload: 738,938
Caseload: 182,768 Caseload: approx. 35,000

6. © Copyright 2017 – National Employment Services Association
jobactive
Quasi-market
The 44 providers are non-government organisations in direct competition
4-6 providers compete in each of the 51 regions.
The Federal Government manages commissioning, compliance monitoring and direct
allocation of “market share” based on performance (Star Ratings)
Provider remuneration is primarily outcomes-driven
To achieve optimal outcomes, providers
Engage directly with local employers, gathering vacancies & matching job seekers to
local employment opportunities.
An Employment Fund is made available to providers per job seeker to allow investment
in a range of interventions to improve their employability including
Education and training
Services to address non-vocational barriers such as transport, housing, mental health etc.

7. © Copyright 2017 – National Employment Services Association
The JSCI and Streaming
The JSCI is a streaming tool designed to assess a job seeker’s level of required assistance.
The job seeker’s answers are weighted to give a single score which determines their
jobactive stream assignment, or whether a further ESAt assessment is required.
The streams determine eligibility for different levels and types of support, the quantum of
outcome payments for the provider and impact the performance calculations.
Stream A
Stream B
Stream C
Job Seeker
Classification
Instrument
(JSCI)
SOME BARRIERS TO EMPLOYMENT
MINOR ASSISTANCE REQUIRED
MANY (NON-VOCATIONAL)
BARRIERS TO EMPLOYMENT
LEAST BARRIERS TO EMPLOYMENT
HIGH SELF-SUFFICIENCY
Employment
Services
Assessment
(ESAt)

8. © Copyright 2017 – National Employment Services Association
Still in job
after 12 weeks
(12 wk outcomes)
Placed
in a job
The Star Ratings: provider performance
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Commenced
with provider
WEEKS
Time to placement
Job
seeker
Proportion of
26 week outcomes
Proportion of 26 week Indigenous outcomes
10%
10%
10%
10%
10%
50%
Time to placement for 26 week outcomes
Proportion of 12 week outcomes
Proportion of job seekers that have
met their activity requirements
Time to placement in Work for the Dole phase
Still in job
after 26 weeks
(26 wk outcomes)
(Job seekers enter Work for
the Dole (or activity) phase if
time to placement is longer
than 12 months)
Weighting by stream
for each segment:
Stream A 25%
Stream B 30%
Stream C 40%
WEIGHTINGS

9. © Copyright 2017 – National Employment Services Association
The Star Ratings: labour market harmonisation
Local labour market variables must be considered to ensure a fair national
comparison between sites.
For each stream and each performance measure in each period at each site, the
actual performance is compared to the ‘expected performance’ (the regression
model) where a higher actual versus expected ratio = higher stars.
Expected performance is derived from detailed labour market information data
that considers:
• The year and month that the job seeker commenced assistance
• The employment growth rate of the job seeker’s region
• The proportion of the population on income support for the job seeker’s region.
• The low-skilled vacancies proportion for the job seeker’s region.
• Whether the job seeker is in a metropolitan area
• The unemployment rate of the job seeker’s region
Data is sourced regularly from national, regional and sectoral sources, as well as
local connections and intelligence from employers and analysis

10. © Copyright 2017 – National Employment Services Association
Technological tools: ESS and jobactive website
The Department of Employment has developed a sophisticated
computational system in parallel with the evolving Employment Services
sector since the 1980s, called the Employment Services System (ESS):
a database of providers and job seekers,
a complex reporting and compliance management system, linking provider
performance, job seeker details and benefits payments information
In addition, the new jobactive web portal allows
Searching for jobs by keyword, industry or location for job seekers
Searching for candidates and job ad placement for employers
Up to date information on government support for both job seekers and employers

11. © Copyright 2017 – National Employment Services Association
Technological tools: the jobactive website
https://jobsearch.gov.auhttps://jobsearch.gov.au

12. © Copyright 2017 – National Employment Services Association
Technological tools: The LMIP
The Labour Market Information Portal provides up to date analytical data on
all aspects of the Australian labour market.
http://lmip.gov.au

13. www.nesa.com.au
Sally Sinclair, CEO
sallys@nesa.com.au
+61 (0)3 9624 2301
20-22 Albert Rd. , South Melbourne, VIC, 3205
AUSTRALIA
@nesa01 nesaltd
linkedin.com/company/national-employment-services-association

14. © Copyright 2017 – National Employment Services Association
INNOVATION IN PUBLIC EMPLOYMENT SERVICES
NEW WAYS TO IMPROVE JOB MATCHING
OECD LEED 13th Annual Meeting 10-11 April 2017 Prague Czech Republic