2 Outcomes for young people
Creation of Future Jobs Fund posts
13. The intention of the Future Jobs Fund was
to generate job opportunities, primarily for long-term unemployed
people, at a time of rising unemployment. In the first 10 months
of the scheme (October 2009 to July 2010), 54,920 benefit claimants
started a FJF job, of which 47,060 were aged between 18 and 24.[12]
In his oral evidence, the Minister for Employment reported that,
as at November 2010, the programme was not on track to meet its
initial target: "At the moment, the Future Jobs Fund is still
in numbers terms behind where it was originally anticipated to
be; about 20,000 fewer jobs have been created at this point than
was in the original tracking for the fund".[13]
14. DWP gave us a number of reasons for delays
in the early implementation of the programme, which they believe
contributed to the fact that the number of jobs fell short of
the target. These issues are discussed in detail in Chapter 7
of this Report.
15. Witnesses argued that the momentum of the
programme had been affected by the announcement that there would
be no new entrants to the programme beyond March 2011, because
local partnerships were less likely to invest in the infrastructure
required to create and manage jobs as the programme moved towards
its completion. The National Day Nurseries Association, who delivered
a programme with Kirklees Council, told us:
The high-profile announcement of the ending of the
FJF scheme has led to some reduction in the profile amongst potential
applicants and Jobcentre Advisers. This has made it harder to
direct applicants to jobs in existing contracts, and to some extent
has stalled the momentum Kirklees was creating locally.[14]
Social Enterprise Solutions took a similar view:
It took months of intensive activity to engage social
enterprises with FJF, and to persuade Jobcentre Plus that the
programme was not just for low achievers. Because of its evident
success, momentum was built. Businesses wanted more FJF employees,
new businesses wanted to join the scheme, and more unemployed
young people wanted to benefit from it. The momentum is now lost,
leaving frustration that nothing has yet taken its place.[15]
16. The following table shows how many people
started an FJF post in each month since the programme began.
| Month
| FJF job starts
|
| October 2009 | 470
|
| November 2009 | 2,220
|
| December 2009 | 1,850
|
| January 2010 | 4,430
|
| February 2010 | 6,080
|
| March 2010 | 12,020
|
| April 2010 | 7,140
|
| May 2010 | 6,790
|
| June 2010 | 7,910
|
| July 2010 | 6,030
|
Source: DWP Young Person's Guarantee Official
Statistics, 13 October 2010
These statistics only provide figures up to July
2010. We therefore only have data for two calendar months following
the announcement in May 2010 of the decision to terminate the
programme and it is not possible to establish from this data whether
there was a downward trend in the number of FJF posts created
following the announcement. The next release of statistics for
the FJF is scheduled for January 2011, which may offer a clearer
indication of whether fewer posts were created after May 2010.
17. DWP statistics show how many individuals
started an FJF post, but do not indicate how many of those individuals
completed the minimum six-month period. A separate DWP analysis
of FJF participant outcomes indicates that among those participants
starting the FJF in the first two months of the programme, only
10% were claiming Jobseeker's Allowance again within the six-month
period that their FJF post was scheduled to last.[16]
However, these DWP figures do not provide a reliable measure
of how many FJF participants lasted the full six months. It is
possible that some left the FJF programme during the six-month
period for other employment. It is also possible that individuals
left the programme but did not immediately start claiming Jobseeker's
Allowance. This DWP analysis is also limited in that it only covers
the first two months of the programme, when it was in a start-up
phase.
18. Written evidence we received suggested that
a high percentage of FJF workers completed their six-month period.
For example: Portsmouth City Council reported that only 12% did
not complete the contract period; St Paul's Development Trust
state that less than 10% failed to complete their employment period;
Novas Scarman reported that 20% left the programme early; and
Oxfordshire County Council claim that 79% of those recruited in
phase one either completed or were expected to complete the programme.[17]
We would note that these figures are taken from only a
small number of witnesses and only relate to the early stages
of the programme. However, as highlighted in Chapter 5, the wider
evidence we received from providers and employers was generally
positive about the programme.
Sustainable employment outcomes
for young people
19. There is a lack of strong evidence on whether
participants were able to find permanent paid employment following
their FJF post. This, in part, reflects the fact that participation
in FJF is too recent for permanent employment outcomes to be observed.
20. DWP states that it is too early to understand
the impact the Future Jobs Fund has had on entry to employment.[18]
Other witnesses, including the CBI and Groundwork UK, agreed.[19]
Professor Paul Gregg commented that terminating the programme
at this stage means that "we will not ever learn how good
or bad it was and which design features were good or bad".[20]
However, while we accept that it may be too early to assess the
programme at this moment, over 55,000 people have now participated
in the Future Jobs Fund, and a proper evaluation next year should
be able to demonstrate the extent to which the programme was effective
in achieving sustained employment.
21. As mentioned, DWP has published some emerging
analysis on the outcomes of the programme.[21]
The analysis focuses only on participants who took part in the
first two months of the programme, as this is the only data available
at present. Furthermore, it considers benefit outcomes rather
than employment outcomes. As such, the analysis has its limitations
and it will be possible to learn more from future analysis in
the coming months as more data become available. The analysis
includes the following table, which shows the proportion of individuals
claiming working age benefits after starting an FJF job:[22]
| % FJF participants
|
| On benefits 1 month after start
| 2% |
| On benefits 2 months after start
| 3% |
| On benefits 3 months after start
| 4% |
| On benefits 4 months after start
| 7% |
| On benefits 5 months after start
| 9% |
| On benefits 6 months after start
| 10% |
| On benefits 7 months after start
| 50% |
22. The figures show that only small numbers
of FJF participants claimed benefits during the six months following
their FJF start, but this is to be expected, since the FJF jobs
last for six months. The figures then show that half of FJF participants
claimed benefits seven months after they started FJF.
23. The analysis states that 35% of 18-24 year-olds
entering non-FJF work after a 9-12 month period claiming Jobseeker's
Allowance were back on benefits seven months later. The implication
is that if an unemployed young person finds non-FJF work they
are less likely than an FJF worker to end up on Jobseeker's Allowance
after seven months. However, comparing these figures for FJF
workers and non-FJF workers is unhelpful for the following reasons:
- FJF posts are usually six-month
posts, whereas other jobs would not have this restriction and
might be expected to last longer;
- FJF participants may experience a short period
of unemployment after six months before finding a new job; and
- claimants able to find work without the FJF are
likely to differ in important ways from FJF participants, for
example in terms of their experience, skills and personal circumstances.
A comparison of their respective outcomes cannot distinguish the
effect of these different characteristics from the effect of the
FJF.
As the DWP analysis explains, further tracking of
an FJF participant's benefit records eight, nine and ten months
after starting FJF will provide a longer term picture of FJF outcomes.[23]
24. Written evidence indicated that, from the
early stages of the programme, a reasonable percentage of FJF
workers have taken up employment following their FJF work. Examples
include:
Percentage taking up employment following an FJF
post[24]
| Be Birmingham | >30%
| >225 |
| Caerphilly | 71%
| 29 |
| Glasgow City Council / Glasgow Works
| 41% | n/a
|
| Groundwork UK | 30%
| 710 |
| Hampshire County Council
| 25% | n/a
|
| Liverpool City Region |
29% | 379
|
| National Day Nurseries Association
| 52% | n/a
|
| Norfolk County Council
| 40% | 104
|
| Oxfordshire County Council
| 55% | n/a
|
| Solihull | >50%
| >33 |
| Stoke and Staffordshire
| 78% | n/a
|
25. This evidence is very mixed and has clear limitations.
As with the DWP data, the figures only relate to the early stages
of the programme, rather than the programme as a whole. They do
not cover a representative sample of providers, and we are not
able to verify whether this data has been collected consistently
and accurately across providers. Also these regional figures cannot
be compared directly with the DWP figures, as the DWP figures
use a different measure, namely, how many participants claimed
benefits following their FJF post. Nevertheless, it is worth
noting that the 50% figure quoted by DWP for people going back
on benefits at seven months is not strongly contradicted by the
estimates provided by local partnerships for people going onto
jobs after completing the FJF programme.
26. Overall, the information we have received
to date does not provide a clear indication of the numbers of
FJF workers finding sustainable employment following their FJF
post. However, even if such information were available there may
still be some debate around whether the FJF intervention was the
primary factor leading to a percentage of its participants gaining
a permanent job. The Government did not set a public target for
the number of FJF workers it expected to find sustainable employment,
so we are also unable to compare the limited emerging data against
the Government's intentions for this aspect of the programme.
Wider benefits for young people
27. Written evidence from FJF providers suggests
that young people gained a number of benefits from the programme,
including acquiring skills and experience, developing a greater
sense of responsibility and confidence, and increased employability.
Be Birmingham is carrying out interviews with 500 FJF workers,
and the emerging findings outlined in their submission indicate
that FJF has supported young people in the following ways:
- raising self esteem;
- being valued—especially because FJF is
presented as a real job, rather than a placement;
- doing a worthwhile job—as the FJF jobs
all have a community benefit;
- being paid—workers feel independent and
a full member of society; and
- having real employment, rather than being on
a "programme". [25]
28. The following comments from FJF employees
and organisations are illustrative of the benefits gained:
It has been a great opportunity for me. I've loved
working for an organisation that is helping out others. Not only
has it helped me get back into work but I have met new friends,
gained confidence and I now have a better idea of what I would
like to do for a long term career.[26]
Getting this job through Future Jobs Fund has really
meant a lot. Being out of work for so long really knocked my confidence,
but since working at Barnardo's my confidence has really come
back and I feel better about myself.[27]
Even though I'd kept myself busy and volunteered
to learn new skills, there is a stigma attached to not having
a job and I feel much better now I am paying my own way and getting
on with my life.[28]
One young man has transformed from an insecure, shy
individual to a competent, friendly, highly thought of important
member of the lab team in the six months he has been with us.[29]
One of the perceived benefits of the FJF to young
people and the employer alike is that they receive proper wages
and have had the same terms and conditions as other employees
thus being treated the same, learning many workplace skills such
as time keeping, work ethic, confidence, specific job skills,
managing money etc. If they have had problems then the employer
has been able to tackle the problems whilst they are at work,
so it is real and practical instead of theoretical in a training
course.[30]
29. Despite falling behind its
initial target, the Future Jobs Fund created a significant number
of temporary jobs for unemployed young people on a national scale.
However, it is too early to assess the extent to which the programme
has supported young people in finding permanent employment.
30. It must be borne in mind
that the FJF was an emergency measure to tackle a particular peak
in youth unemployment. We regard the wider benefits which many
young people gained from the programme in terms of work experience,
confidence and self-esteem and the likely consequent impact on
their future employability, as another indicator of the effectiveness
of the programme.
12 Department for Work and Pensions, Young Person's
Guarantee Official Statistics, 13 October 2010 Back
13
Q 107 Back
14
Ev w100 [Note: references to Ev wxx are references to written
evidence published in the additional written evidence published
on the Committee's website.] Back
15
Ev w11 Back
16
Department for Work and Pensions, Early analysis of Future
Jobs Fund participant outcomes, November 2010 Back
17
Ev w76, Ev w4, Ev w90, Ev w56 Back
18
Ev 51 Back
19
Q 67 and Q 23 Back
20
Q 68 Back
21
Department for Work and Pensions, Early analysis of Future
Jobs Fund participant outcomes, November 2010 Back
22
Department for Work and Pensions, Early analysis of Future
Jobs Fund participant outcomes, November 2010, p 4 Back
23
Department for Work and Pensions, Early analysis of Future
Jobs Fund participant outcomes, November 2010, p 4 Back
24
Ev 45, Ev w54, Ev 56, Ev 58, Ev w155, Ev w100, Ev w65, Ev w57,
Ev w136, Ev w34 Back
25
Ev 44 Back
26
Sally, administrative assistant at Catch 22, Ev w52 Back
27
Louise, admin assistant for Barnado's North West, Ev w185 Back
28
Steve at Lifeline in Kirklees, Ev w195
Back
29
Ev w172 Back
30
Wales Council for Voluntary Action, Ev w13 Back
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