This report describes the evaluation of phase 1 of the New Employment Services Trial (NEST) operating across the Mid North Coast and Adelaide South regions. NEST is a new employment services model developed to modernise the delivery of employment services by increasing digital servicing options for job ready participants and providing more intensive and tailored servicing to participants who require additional support.

The evaluation provides formative and developmental insights into the transition, implementation, policy settings, and short-term effectiveness of online and provider-based employment models to inform the national rollout of Workforce Australia. A mixed-methods approach was used. Data sources include five waves of a longitudinal participant study, four tranches of provider and stakeholder fieldwork, participant and provider surveys, a 2021 provider census and departmental administrative data compared against matched regional counterfactuals.

The evaluation confirmed that most participants found digital self-servicing straightforward and suitable for their needs, with low opt-out rates. The Points Based Activation System successfully increased participant agency, flexibility, and satisfaction while contributing to a substantial reduction in non-compliance events. Enhanced Services delivered significantly better and more sustainable long-term employment outcomes for highly disadvantaged job seekers.

The report outlines key programmatic refinements based on the trial's insights, including merging the distinct Digital First and Digital Plus streams into a unified digital service offer to eliminate administrative complexity and completely removing provider servicing tiers in favor of streamlined progress payments. For the Points Based Activation System, the report recommends introducing a minimum job search requirement to ensure consistent engagement, increasing points values for specific high-commitment tasks and shifting from upfront target credits to attendance-verified points allocation. The report highlights the need for continuous assessment tool refinements to monitor digital safety nets, expanded communication strategies to increase participant awareness of online tools and further financial viability tracking of newly implemented provider payment structures.