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Evaluation
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The evaluation of jobactive final report

Joanne Evans, Shelley Evans, Anna Finnigan, Anthony Flint, Stephen Howe, Christina Jankovic, Natalie Jasprizza, Mark Jones, Bella Liao-Masters, Charity Liaw, Athos Nicolaou, Jo Virgona
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Employment services Unemployment Wage subsidy Welfare reform Welfare recipients Mixed methods (research) Impact evaluation Quasi-experimental evaluation Regression discontinuity methods Process evaluation Australia
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download linkThe evaluation of jobactive final report 15.97 MB
Description

This report provides a final comprehensive evaluation of the jobactive employment services model, which operated as Australia's mainstream non-remote employment service from July 2015 to June 2022. The program followed a 'work first' approach framework aimed at moving job seekers into employment rapidly, reducing welfare dependence, introducing stronger mutual obligations, and optimising service flexibility for providers.

The evaluation utilised a mixed methods approach, combining extensive quantitative administrative datasets with qualitative stakeholder feedback. Quantitative data were analysed using quasi-experimental methods, including a Regression Discontinuity Design (RDD) and survival analysis models to evaluate long-term outcome sustainability. This was integrated with jobseeker and employer survey data.

The evaluation established that jobactive outperformed its predecessor, Job Services Australia (JSA), by increasing 12-month income support exits and improving welfare dependency reductions. These positive outcomes were most pronounced for highly disadvantaged individuals in Stream B and Stream C. Additionally, employment outcomes achieved under jobactive proved more sustainable over an 18-month tracking horizon.

The timing of the Annual Activity Requirement (AAR) at the six-month mark generated a robust referral/activation effect for Stream A cohorts. Wage subsidies were highly effective, though they suffered from a dramatic increase in deadweight loss, as employers frequently claimed them after a hiring decision had already been finalised. Provider administrative burdens remained exceptionally high,

The evaluation's recommendations directly informed the development of the successor model, Workforce Australia, which replaced jobactive in July 2022. Key structural recommendations implemented include abandoning the rigid 'work first' framework in favour of human capital and capability investment for the hardest-to-place job seekers.

The evaluation recommended implementing a dual service structure where job-ready individuals self-manage via a digital employment services platform to reduce administrative red tape, while high-risk job seekers receive intensive, cohort-specific case management. To resolve the deadweight issues of wage subsidies, funding pools should have clear opportunity costs (such as being integrated into general provider accounts). Finally, the compliance framework should transition to a Points Based Activation System (PBAS) to maximise participation flexibility, while ensuring that payment suspensions incorporate multi-day delay safeguards to minimise immediate financial distress for highly vulnerable individuals.

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License type:
CC BY
Access Rights Type:
open