The latest quarterly report on the Jobs Boost Outcomes Fund shows the effectiveness of outcomes-based financing approaches.
By the end of March, 5 442 excluded young people had been enrolled into programmes and more than 3 070 had been placed into quality jobs across 107 employers.
The programme is on course to exceed the target of 4 500 young people successfully holding quality jobs.
Jobs Boost launched in mid-2024 and the first phase will conclude by end-2025.
An outcomes fund ties payments to delivery of specific outcomes. In Jobs Boost, 12 implementation partners were appointed to deliver outcomes through a comprehensive proposal process. Implementation partners receive 80% of the funding only after the job seeker is placed in a qualifying job, with the final 20% paid only once the candidate has held the job for six months, ensuring implementation partners provide on-the-job support.
Qualifying jobs are full-time formal sector jobs which pay at least minimum wage and in which wages are not subsidised. So far, 104 employers have employed Jobs Boost candidates and the average salary is R5 677 per month, significantly above the minimum wage.
The Jobs Boost Outcomes Fund is an innovative approach to youth employment. The design ensures that implementation partners carry the risk of failing to deliver outcomes. This radically changes typical approaches to skills interventions which usually see government paying for inputs and activities such as training programmes and wage subsidies.
In the traditional approach government carries the risk that these activities do not result in the intended jobs. An outcomes approach shifts the risk to implementation partners. International studies which informed the design of Jobs Boost show that implementation partners are incentivised to innovate and customise their interventions to ensure that jobseekers are successful.