Performance measures: jobactive

Performance measures: jobactive

Performance measures and targets are designed to be ambitious. Performance measures for jobactive are based on the objectives of the program, and targets are reviewed in the light of new information as the jobactive program matures. The Department sees successful achievement against a performance measure when actual performance is within 5 per cent of meeting the target.

 

In 2016–17, the Department met or exceeded 17 of the 19 targets for the outcome. Importantly, jobactive providers recorded over 370,000 job placements, nearly 24,000 more than recorded for 2015–16.

Objective 1—Helping job seekers find and keep a job

Having a job not only provides financial security but also enhances self-confidence, self-esteem and social and economic participation. The jobactive program is designed to ensure that employment services providers are committed to helping job seekers find sustainable employment.

Demonstrating the Department’s commitment to the Closing the Gap initiative and to drive continuous improvement in Indigenous employment outcomes, jobactive includes specific provider targets in relation to Indigenous job seekers. These targets make explicit the expectation that providers achieve parity benchmarks in employment placements and outcomes for Indigenous job seekers.

Count of job placements

When a job seeker finds a job or is placed in a job by their employment services provider, the provider can record a job placement on the Department’s IT system. The count of job placements measures the total number of jobs recorded under jobactive.

In 2016–17, the second year of the jobactive program, over 370,000 job placements were recorded. This represents 97.5 per cent of the job placement target for all job seekers, with performance improving by six percentage points on 2015–16.

For Indigenous Australians, nearly 34,000 job placements were recorded—89.4 per cent of the target. Encouragingly, performance improved by 14 percentage points on 2015–16. That the target was not met is indicative of the challenges associated with reaching parity in employment between Indigenous and non-Indigenous Australians.

Achievement of performance targets (particularly job placements) is strongly influenced by labour market conditions. This is demonstrated by the relationship between the count of job placements and the Department’s internet vacancy index, which measures the number of online job advertisements each month (see Figure 2).

Jobs growth has been affected by the subdued labour market in much of the past 12 months, which has limited the number of available job opportunities. In general, as labour market conditions improve, the number of job vacancies advertised increases, meaning there are more jobs available for job seekers. When labour market conditions decline, the number of job vacancies decreases, making it harder for job seekers to gain employment.

Figure 2. Number of job placements and number of job advertisements, July 2009 to March 2017
Figure 2. Number of job placements and number of job advertisements, July 2009 to March 2017. Overall, the number of job placements follows similar trends to number of jobs advertised online

Overall, the number of job placements follows similar trends to number of jobs advertised online.

Proportion of placements sustained to four, 12 and 26 weeks

Employment services providers receive payments from the Department called ‘outcome fees’ for helping a job seeker remain in a job. There are three main types of outcome fees in jobactive:

  • If a job seeker is placed in a job, remains employed for four weeks and reduces their income support payments by an average of at least 60 per cent, the provider receives a 4-Week Outcome payment.
  • A provider receives a 12-Week Outcome payment if the job seeker remains employed for 12 weeks and continues to reduce their income support payments by an average of at least 60 per cent.
  • A provider receives a 26-Week Outcome payment if the job seeker remains employed for 26 weeks and reduces their reliance on income support by 100 per cent.

The rate at which job placements convert to one of these paid outcomes gives an indication of whether job placements are leading to sustainable employment.

The performance measures and targets for jobactive for 2015–16 were based on the performance of the previous program, Job Services Australia. After a review of the performance of jobactive in 2015–16, and in line with keeping performance measures and targets ambitious but achievable, these targets were revised for 2016–17. The targets relating to the proportion of job placements sustained to four weeks were reduced for 2016–17 while targets relating to the proportion of job placements sustained to 12 and 26 weeks were increased for 2016–17.

In the reporting year, jobactive exceeded all six performance targets for all job seekers and for Indigenous Australians (see Figure 3). In contrast, in 2015–16, only three of the six targets were met, including meeting only one target for Indigenous job seekers. Exceeding all six targets in 2016–17 shows that the Department is meeting its objective of helping job seekers find sustainable employment and is contributing positively to the Closing the Gap initiative.

Figure 3. Proportion of job placements sustained to four, 12 and 26 weeks: overall and Indigenous Australians
Figure 3. Proportion of job placements sustained to four, 12 and 26 weeks: overall and Indigenous Australians

Figure 3. Graph information

4-week outcome rate (target of 55%)

  • Overall: 62.9%
  • Indigenous: 57.7%

12-week outcome rate (target of 45%)

  • Overall: 54.9%
  • Indigenous: 47.6%

26-week outcome rate (target of 25%)

  • Overall: 37.8%
  • Indigenous: 29.5%

Proportion of job seekers employed three months after participation in jobactive

Some job seekers need assistance to deal with personal or non-vocational matters before they are ready for employment. Under jobactive, eligible job seekers are assisted through one of three streams, which correlate with differing levels of labour market disadvantage. The most job-ready job seekers are assisted through Stream A; Stream B job seekers will have some vocational barriers to employment (for example, language barriers); Stream C is for the most disadvantaged job seekers, who are more likely to have a combination of vocational and non-vocational difficulties (such as physical and/or mental health problems, low work capacity or substance abuse) that need to be resolved before they can take up and retain a job.

The Department measures the employment status of each job seeker three months after their participation in jobactive. It has set an overall program target and a target for each stream to better reflect the different job seekers assisted through the program. In 2016–17, 48.5 per cent of all job seekers were employed three months after participation in jobactive, exceeding the performance target and improving against performance in 2015–16 (see Figure 4).

Figure 4. Proportion of all job seekers employed three months after participation in jobactive, 2016-17.
Figure 4. Proportion of all job seekers employed three months after participation in jobactive, 2016-17

Figure 4. Graph information

Overall: 48.5% (target: 45%)

Stream A: 58.6% (target: 55%)

Stream B: 40.3% (target: 35%)

Steam C: 26.6% (target: 25%)

Job placements lead to sustained employment

The Department also monitors the employment status of job seekers three months after they have been placed in a job. In 2016–17, 78.8 per cent of surveyed job seekers who were placed in a job remained in employment three months later (see Figure 5).

Figure 5. Employment type of employed job seekers three months after participating in jobactive, 2016-17.
Figure 5. Employment type of employed job seekers three months after participating in jobactive, 2016-17.

Figure 5. Graph information

  • Part-time: 53.7%
  • Full-time: 46.3%
  • Permanent: 36.6%
  • Casual: 53.5%
  • Self-employed: 9.9%
Table 1. jobactive performance against Objective 1: a summary
Indicator Target Result
Count of job placements 380,000 overall
38,000 Indigenous
370,318
33,966
Proportion of job placements sustained to four weeks (overall) 55% 62.9%
Proportion of job placements sustained to four weeks (Indigenous) 55% 57.7%
Proportion of job placements sustained to 12 weeks (overall) 45% 54.9%
Proportion of job placements sustained to 12 weeks (Indigenous) 45% 47.6%
Proportion of job placements sustained to 26 weeks (overall) 25% 37.8%
Proportion of job placements sustained to 26 weeks (Indigenous) 25% 29.5%
Proportion of job seekers employed three months after participation in jobactive 55% - Stream A
35% - Stream B
25% - Stream C
45% - overall
58.6% - Stream A
40.3% - Stream B
26.6% - Stream C
48.5% - overall