The Online Employment Services Trial (OEST) evaluated whether unemployed job seekers receiving the JobSeeker Payment could achieve similar or better outcomes through online employment services compared to traditional, provider-based services. 

Prior to mid-2020, employment services were delivered face-to-face by government-contracted providers, a method that was costly and often inconvenient. The trial aimed to assess the effectiveness of a more flexible, digital-first approach for job seekers deemed capable of self-managing their job search. 

Conducted between July 2018 and April 2020, the trial randomly assigned 17,810 job seekers into treatment (online services) and control (provider services) groups. 

The evaluation found that participants using online services had comparable or slightly better outcomes. Both groups were equally likely to exit income support within six months, and 91% of the online group remained off income support six months after exiting, compared to 89% in the control group. While the differences were modest, the cost-effectiveness of online services made these results significant. Most participants found the online platform easy to use and satisfactory, although some struggled due to low digital literacy or poor internet access. These individuals would benefit from continued support through traditional provider services. 

The trial’s findings were particularly valuable during the COVID-19 pandemic when face-to-face services became impractical. The results supported the government’s decision to expand online services as the default for job-ready individuals and provided guidance on how to target support for those less suited to digital platforms. 

Overall, the trial demonstrated that online employment services are a viable, efficient, and scalable alternative to traditional models for job-ready individuals, offering both cost savings and comparable employment outcomes, while highlighting the need for tailored support for digitally disadvantaged job seekers.