Are Employment Zones Successful? Evidence From the First Four Years

Abstract

The British Employment Service increasingly relies on private providers. Arguably, the Employment Zone initiative provides a radical example of contracting out. Since 2000, long-term unemployed people in 13 local areas have been receiving employment reintegration services through private providers. This article provides a comprehensive overview of this experience. It builds on existing evaluations and primary research through expert interviews and document analysis. It attempts to add new, original insights into the development of the market as well as the incentive mechanisms used to gear employment outcomes. It seems that the flexibility of private providers is indeed able to increase the effectiveness of placement services compared with Jobcentre Plus. Nevertheless, Employment Zones seem to suffer from the general deficiencies of ‘Work First’ policies.

Acknowledgements

I would like to thank the many interviewees in the Department for Work and Pensions and Jobcentre Plus as well as private providers and researchers for their openness and the useful information provided. My thanks also goes to two anonymous referees for valuable comments.