The Active Participation Model (APM), implemented on 1 July 2003 as part of the third Employment Services Contract (ESC3), was the most significant change to Job Network since its inception in 1998. This report presents an analysis of the operation of Job Network in the first three years of the APM (i.e. during ESC3, 1 July 2003 to 30 June 2006). Where it is appropriate and possible, comparisons are presented with the performance of Job Network in the second Employment Services Contract (ESC2). 

The primary objectives of the APM are to: 

• increase the effectiveness of employment services in securing employment and other positive outcomes for job seekers; and
• ensure that job seekers who remain unemployed are engaged in ongoing employment focused activity and job search. 

A number of measures of performance were used in the evaluation including: 

• commencement or participation rates, usually expressed as the proportion of job seekers referred to a program who go on to commence;
• placement rates, which refer to the proportion of program participants placed in a job;
• employment and education outcome rates following program participation;
• exits from employment assistance;
• off-benefit outcomes. This refers to the proportion of income support recipients who leave income support; and
• income support reliance, expressed as the proportion of a job seeker’s income support payments as a total of all income (from earned income and from income support payments), where possible, measured monthly during the 12 months before and after assistance.

While at the aggregate level, the proportion of job seekers who exited from Job Network assistance was found to be lower for ESC3 than for ESC2, a detailed analysis found that: 

• net employment impacts of Intensive Support job search training and Intensive Support customised assistance increased compared with the corresponding programs delivered during ESC2;
• commencement rates for Intensive Support job search training and customised assistance also improved. This was particularly evident for job seekers not subject to the activity test;
• a comparative analysis of exit rates from both Job Network (i.e. employment assistance no longer required) and income support for Fully Job Network Eligible job seekers confirmed Job Network’s stronger performance during ESC3 relative to ESC2;
• the costs per employment outcome continued to decline during ESC3 despite increasing numbers in assistance and increasing costs of assistance; and
• outcomes under the APM were more likely to be sustained.