Overview
20 November 2023 – The SA Quarterly Labour Force Survey, showed that nearly six million young people were unemployed, representing 43.37% of young people in the labour force and one of the highest rates in the world. The impacts of this cut across multiple social issues including poverty, inequality, unrest as well as on an individual level negatively affecting mental and physical wellbeing as well as lifelong earnings potential.
This led to a new initiative being launched to tackle this chronic problem; Jobs Boost, a R300 million (c. $17m) outcomes fund designed and launched by research-led consulting house Krutham. The funding covers the first pilot phase and is expected to scale thereafter. The innovative programme, the largest of its kind globally, will work with implementing partners to train unemployed, previously excluded youth and secure sustainable, quality jobs for them. Applying an outcomes-based model incentivises program partners to work with employers to ensure that they develop young people who are able thrive in the workplace. As explained by Dr Stuart Theobald, founder and executive chairman at Krutham. “Instead of spending on skills development that may or may not lead to a job, the spending is focused on the job itself.”
For the pilot, the National Skills Fund, a part of the Department of Higher Education and Training, will act as the sole outcomes funder. However, being set up as a Social Impact Bond , working capital will be provided by social investors and repaid according to outcomes achieved, which include candidate enrolment in the programme, job placement, and sustained employment over three months and then six months. The programme structure can be seen below.
HBGI’s CEO, Richard Johnson is one of the two independent advisors on the Advisory Board, piloting the Social Impact Bond to deliver success, drawing on HBGI’s experience of overseeing the performance of eleven Social and Development Impact Bonds across the world, including in homelessness, school exclusion, sexual & reproductive health and refugee integration.
Jobs Boost Outcomes Fund: Programme Structure
