Objective 5 - Young people move into work or education

Transition to Work began in February 2016. The service is designed to provide intensive, pre-employment support to improve the work readiness of young people aged between 15 and 21 to help them into work (including apprenticeships or traineeships) or education. Participants can receive up to a 12-month intensive service in Transition to Work.

Targets for the Transition to Work performance measures were increased in mid-2017 in the department’s 2017–18 Corporate Plan. This was due to strong performance against the 2016–17 targets, which were set at 25 per cent above historical outcome rates for a similar group in mainstream employment services (jobactive).

The strong performance of Transition to Work reflects, in part, the strength of the labour market, particularly for young people. Over the 12 months to June 2018, ABS data shows that employment for 15 to 24 year olds grew by 95,200 or 5.1 per cent.

Table 5. Results for Objective 5
Indicator Target Result
Proportion of placements sustained to a 12-week employment outcome
or hybrid outcome, or a 26-week education outcome
65%* 70.9%
Proportion of placements that are converted to sustainability outcomes 40%* 46.1%
Proportion of Transition to Work participants moving off income
support, reducing their reliance on income support, or moving on to
Youth Allowance (student) six months after participating in the service
30%* 34.1%

Proportion of placements sustained to a 12-week employment or hybrid outcome, or a 26-week education outcome

This performance measure recognises the different ways a participant can find and stay in work. A Transition to Work provider can receive:

  • a 12-week employment outcome payment when a participant is employed for 12 cumulative weeks, where each period of employment comprises at least four weeks
  • an education outcome payment when a participant undertakes 26 consecutive weeks of:
    • full-time participation in or completion of a Certificate III course or higher
    • full-time participation in or completion of secondary education leading to a Year 12 qualification, or
    • full-time participation in the Adult Migrant English program or the Skills for Education and Employment program, and
  • a hybrid outcome payment when a participant completes 12 consecutive weeks in a combination of employment or study (as described in the outcomes listed above).

This measure is calculated as the proportion of Transition to Work placements sustained to a 12 week employment or hybrid outcome, or a 26-week education outcome, using administrative data. The measure is reported against annually.

In 2017–18, 70.9 per cent of job placements for Transition to Work participants were sustained to a 12 week employment or hybrid outcome, or a 26-week education outcome. This is 5.9 percentage points above the revised 2017–18 target of 65 per cent. The target for this measure was set at 45 per cent for 2016–17.

Proportion of placements converted to sustainability outcomes

Providers can receive a sustainability outcome payment when a participant achieves a 12 week employment or hybrid outcome, which then continues for a further 14 consecutive weeks.

This measure is calculated as the proportion of placements converted to sustainability outcomes using administrative data. It is reported on a monthly basis.

In 2017–18, 46.1 per cent of job placements for Transition to Work participants were converted to a sustainability outcome. This is 6.1 percentage points above the revised 2017–18 target of 40 per cent. The target for this measure was set at 25 per cent for the 2016–17 financial year.

Proportion of participants reducing reliance on income support, or moving on to Youth Allowance (student)

Participants who move off or reduce their reliance on income support are on their way to becoming financially self-reliant and independent. Those who move onto Youth Allowance (student) support payments are studying and earning qualifications that will improve their employment prospects in the future.

This measure is calculated as the proportion of Transition to Work participants moving off income support, reducing their reliance on income support (defined as a reduction of 60 per cent or more), or moving on to Youth Allowance (student) support payments six months after participating in the service. Data was collected for participants in the Transition to Work service between 1 January 2017 and 31 December 2017. The income support status of these participants was measured six months later, between 1 July 2017 and 30 June 2018. The measure is calculated using administrative data sources and is reported on an annual basis.

jobactive – overall program measure

The cost per employment outcome gauges jobactive’s efficiency in helping job seekers find and stay in work. It is a measure of the value for money provided by employment services.

When considered over time, this measure demonstrates the department’s efficiency in developing and implementing national policies and programs that help Australians into employment.

Table 6. Results for Overall Program Measure
Indicator Target Result
Cost per employment outcome $2,500 $2,188

Cost per employment outcome

This measure is calculated annually using administrative data, and data from the department’s post-program monitoring survey. Program costs consider expenditure such as Employment Fund expenditure, administration fees and outcome payments. Employment outcomes are extrapolated from the number of job seekers who are employed three months after participation in jobactive, as measured by the post-program monitoring survey. Employment outcomes extrapolated for this measure include all employment, such as part-time employment, that is insufficient to generate a paid employment outcome for providers.

In 2017–18, the cost per employment outcome for jobactive was $2,188, well within the target of $2,500. This is higher than the cost per employment outcome for jobactive in 2016–17 of $1,453. This reflects increased jobactive expenditure, mainly on outcome fees, the Employment Fund, PaTH and wage subsidies, and a smaller jobactive caseload in 2017–18.