Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The State's public employment service is managed by my Department and delivered directly by its own Intreo service, as well as by contracted private companies such as the two JobPath companies, Seetec Limited and Turas Nua Limited, the local employment service companies and job club providers. The Department has contracts in place with in excess of 60 companies for the provision of these services. This includes two contracts with JobPath service providers.

JobPath is a new contract model whereby the providers, which are private commercial enterprises, are paid by results. In other words, they are paid when they achieve sustained employment outcomes for jobseekers. This payment model contrasts with the approach used to fund the local employment service, where the providers are paid by inputs regardless of outcomes. In other words, they are paid an amount that is agreed at the beginning of each year based on the forecast level of activity. The success or otherwise of the local employment service provider in securing employment for jobseekers does not affect the payment amount.

When JobPath was developed, fears were expressed that it would take over from or substitute for the local employment service. While I understand these concerns, this was not the intention and it has not happened. The purpose of JobPath was, and is, to complement and augment the existing service capacity of the Department through Intreo and the local employment services. There has been no reduction in the budget allocated to the local employment services.

In fact, in addition to the service capacity offered by the local employment services, more than 600 staff are employed by the JobPath providers delivering a case management and advisory service to long-term unemployed people. These people would not have had access to such a service had JobPath not been made available. In addition, the capacity introduced by JobPath has enabled the Department to reduce the workload on its own caseworkers such that each local employment service caseworker should have a caseload of no more than 120 jobseekers. This is in line with international norms. Prior to the introduction of JobPath, the caseload was more than 1,500 jobseekers per Intreo and local employment service caseworker. I am, therefore, satisfied that the development of JobPath has been, and will continue to be, positive both for jobseekers and for the local employment service.

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