From top: Joan Burton and Enda Kenny at a JobBridge announcement in 2013; Minister for Social Protection Leo Varadkar at the launch of the Indecon review of JobBridge yesterday at the Royal Irish Academy, Dublin

Long live the new scam!

This morning.

Further to the announcement by Minister for Social Protection Leo Varadkar yesterday that JobBridge is to be wound down and that it will be replaced with another scheme next year – the details of which have yet to be released…

On RTÉ’s Morning Ireland, presenter Cathal MacCoille spoke to Alan Gray, economist and managing director of Indecon Consultants – which carried out a review of JobBridge and recommended it be changed.

From their discussion:

Cathal MacCoille: “First of all, JobBridge, how good was it for how many?”

Alan Gray: “It’s a very interesting evidence-based survey, Cathal, it was done by a team of Irish and international experts… and what it showed was very high levels of progression to employment. Now, those people previously unemployed, who were on JobBridge, have now found jobs.”

MacCoille: “64%”

Gray: “64%.”

MacCoille: And that’s high is it?”

Gray: “It’s extremely high.”

MacCoille: “How many of those, that’s good for them, but can you figure out how much of that was due to the pick up of the economy anyway, or because of them being on JobBridge?”

Gray: “That’s a critical issue and, as part of the analysis, a very detailed econometric research was done to compare how that group did, compared with a counterfactual of what would have happened anyway. And the result…”

MacCoille: “Let’s stop for a moment. You compared a controlled group who were on JobBridge, with a controlled group who weren’t?”

Gray: “Exactly.”

MacCoille: “And found what?”

Gray: “And it showed that JobBridge enhanced the probability of getting a job by 32%. That’s probably the highest impact on employment of any labour market programme.”

MacCoille: “How do you get to that conclusion?”

Gray: “Basically, what you do is you control for all other factors, it’s like a scientific experiment, Cathal, it’s like medical research. Where you get an exactly similar group on the labour market, who were unemployed, you track their employment outcomes and you compare it with those on JobBridge and you make sure its statistically robust and it showed that JobBridge had really a quite surprisingly positive impact on employment progression.”

MacCoille: “And yet, you’re, this study comes down for a replacement. Why?”

Gray: “It does, I think the merits of giving the levels of subsidy that the State gave for JobBridge – in a labour market where unemployment is much different than when this scheme was introduced has changed. There was also a number of very positive aspects of JobBridge but some areas of dissatisfaction…”

MacCoille: “With the money particularly?”

Gray: “Particularly.”

MacCoille: “No surprise.”

Gray: “No surprise on that, yeah.”

MacCoille: “Now, so, because there is going to be consultation before this, the precise terms and conditions, as I said, of this are announced for the new year. What, from what you’ve, this study, what would you recommend?”

Gray: “So the Indecon economists have recommended a much more targeted scheme. One where employers enhance skills – most employers already enhance skills as part of JobBridge but we want to ensure that a greater proportion of interns are learning new skills. We also want to ensure a lower level of State subsidy and contributions from employers, who are also benefiting…”

MacCoille: “Because there was none on this scheme...”

Gray: “There was none at all.”

MacCoille: “And you’re saying it should be what?”

Gray: “We’re saying that employers should at least pay the top-up level which was €52 and that, after three months, all interns must receive at least the minimum wage.”

MacCoille: “Which is €9.25 an hour.”

Gray: “Exactly.”

MacCoille: “What about, because this came up with JobBridge constantly and you can guess it will come up with whatever replaces it – regulation, investigation, ensuring that the spirit of the thing is actually the reality for everyone?”

Gray: “I think that was important, particularly in a scheme that was so large and was almost an emergency measure to the level of unemployment. It was hard to ensure adequate monitoring.”

MacCoille: “And was there enough?”

Gray: “I don’t think so, Cathal. It was understandable because the scheme was being introduced in a crisis period, it had a lot of benefits and interns but we’re recommending a more targeted scheme, probably a lower number of participants but more active monitoring and control.”

MacCoille: “The new scheme, as I understand it, would be the medium and long-term unemployed?”

Gray: “That hasn’t been decided yet. One of the benefits of the existing scheme is it was early intervention so that people, as soon as they became unemployed, once they were unemployed for a short period, they got the benefits of JobBridge – that kept them close to the labour market and probably enhanced the employment market.”

MacCoille: “Just coming back to the regulation issue…”

Gray: “Yeah.”

MacCoille: “…which is key. In terms of the way the, even the way the thing is regarded by everybody – quite apart from people who may have, you know, are losing out because they’re getting a hard time, they’re not getting what they should get out of the scheme – so, how should the regulation be better?”

Gray: “I think case officers from the Department of Social Protection should monitor it at a number of points during the internship at the start, during the internship and at the end. But I think the regulation aspect has got more media attention than it actually deserves, Cathal. While there were problems, it wasn’t the major issue and 70% of interns experienced that they had quality work experience and that’s different than some anecdotal evidence that was reported in the media. And one thing to say on that is our research surveyed over 10,000 interns. So it wasn’t just a random bits of feedback and most interns were very satisfied/.”

MacCoille: “Sure, I suppose though, the problem is, if you’re one of the dissatisfied ones – and you’ve good reason to be dissatisfied, well then, that’s for you. That’s a real personal setback. And therefore, we need to ensure that that doesn’t happen, in so far as we can.”

Gray: “I fully accept that, Cathal. And that’s why we’ve recommended a tightening of eligibility criteria. A contribution from employers which will minimise the possibility of rogue employers using it and also enhanced monitoring.”

MacCoille: “And give them a greater investment in the thing – if they’re putting some of their own money into it.”

Gray: “Exactly.”

Listen back in full here

Previously: JobBridge on Broadsheet

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