Editorial Comment:

Focus of Study

This report by the DfEE Financial and Analytical Services, considered the achievements, overall effectiveness and impact of the European Social Fund (ESF) Objective 3 programme between 1994-9 in helping young people and other unemployed integrate more effectively into the labour market. The report draws on a range of different sources of information and research tools, including the ESF Final Claims Database. A key element of the evaluation was also a follow-up survey of leavers approximately six months after leaving their Objective 3 project.

The 1997 Leavers' Survey carried out on behalf of the Department had responses from over 4,500 participants (a 40% response).

Key findings

Around 750,000 people took part in some form of ESF-funded activity under Objective 3 in 1997. Overall just over 70% of participants achieved some form of positive outcome (i.e. job, self-employment, further education and training), with around 30% of them finding work.

Effective job search activity and some form of wage subsidy appear to have strong and positive effects on the chances of an ESF participant finding work. 81% of leavers indicated that they were very, or fairly satisfied with their project, with leavers with positive outcomes being more likely to be satisfied than those without.

The research identified a number of significant benefits from offering integrated packages of support (e.g. including advice, training, job search support, as well as training)6. These benefits included: higher levels of participant satisfaction; lower incidence of early leaving; and greater success in terms of both labour market outcomes and qualifications, recorded on 'integrated' programmes.

Sophisticated modelling of the factors influencing job outcomes, suggested that - after controlling for a range of personal characteristics - those on more integrated programmes are also more likely to be in work 6 months after leaving (65%, compared with 55% of those not on an integrated programme). Interestingly they were also found them to be more likely to gain a qualification (60%, compared with 32% of those not on an integrated programme). Positive effects recorded appear to be greatest for single parents, those over 50, people with a disability, and in particular, the long-term unemployed.