John Brady (Wicklow, Sinn Fein)
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185. To ask the Minister for Social Protection the target set by his Department for JobPath in the number of long-term unemployed it is expected to place in employment annually; the target set for the local employment service; and if he will make a statement on the matter. [24863/17]

Leo Varadkar (Dublin West, Fine Gael)
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As the deputy will be aware, 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 JobPath, Local Employment Service 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 for the provision of the JobPath service and 22 contracts for the provision of the Local Employment Service (LES).

The JobPath Request for Tender set out the percentage of clients referred to the service that the Department expected the service providers to place into employment, based on historic progression to employment rates of each of the referral groups in respect of each contract area (i.e. the ‘counterfactual rate’). The expected performance, known as the reference performance rate, set out in the RFT was set at between 60% and 70% above the counterfactual rate, depending on the client group’s duration of unemployment. The Department also set a minimum performance rate, below which the Department would not accept bids. This was set at 30% above the counterfactual rate.

Based on this information, tenderers were invited to submit performance offers as part of their bids. The performance offers made in the bids form part of the JobPath service providers’ contracts with the department and as such it is not intended to publish same.

I can however confirm that no JobPath providers bid below the reference performance level i.e. below the 60% - 70% above the counterfactual rate as set out in the JobPath request for tender. Full details of the approach taken are contained in the request for tender which is available on the department’s website.

The JobPath service has been designed to support the long term unemployed (and those most at risk of becoming long term unemployed) to obtain and sustain employment in the open labour market. The service is being delivered on a payment by results model with all upfront costs of the service being borne by the companies themselves. Jobseekers engage with the JobPath service for 12 months, but can expect to receive in employment support and assistance from the service for a minimum of three months (and up to a maximum of 12 months) when they enter employment.

Payments to contractors are geared towards sustained employment outcomes achieved; contractors are paid for each 13 week period of full time employment (of 30 hours per week) that former Jobseekers successfully complete, up to a maximum of four such payments. In addition a payment is only made were the former jobseeker was not in receipt of a Jobseeker related income support payment from the department during the 13 week period.

The contracts for the provision of the local employment service (LES) set out the requirements of the service to be delivered and the capacity required from the contractors. Jobseekers engage with the LES service for 12 months and may receive in employment support and assistance from the service when they enter employment. Contractors aim to place 30% of those jobseekers who complete their engagement period with the service into employment (of 30 hours per week).

The clients with whom the local employment service engage fall into two broad groupings - those clients activated/referred by the department for support and assistance and jobseekers who engage directly with the service themselves (this group may include people with a disability, lone parents, early school leavers, qualified adults, ex-offenders, members of the travelling community and refugees).

Payments to contractors are made based on this contract for services model, with the department fully funding the cost of the service in any given location.

I hope this clarifies the matter for the deputy.