Impact Bond: Sticking Together SIB
Stage of development: Implementation
Policy sector: Employment and training
Social challenge: Young people now make up 26.6% of the people experiencing long-term unemployment, up from 22.6% in 2008. The national youth unemployment rate in Australia has been persistently high for the past 25 years and is often double the adult rate. In July 2018 the national youth unemployment rate was 11.1% compared to the national adult rate of 5.3%. Young people under the age of 25 are typically less experienced and are more exposed to precarious jobs than adults. Casual and seasonal employment is common, providing lower long-term job security and career development opportunities. Some young people experience additional barriers to employment, including mental health issues, lack of stable accommodation, disability and criminal justice system involvement.
Intervention: The Sticking Together Project is an intensive 60-week coaching program that supports young people to get ready for work and, importantly, develop life skills that enable them to stick with their jobs.
Classification notes: The program is intended to provide additional support to the Commonwealth jobactive services, by providing holistic support to young people with complex and multiple barriers to employment to find and sustain employment.
Date outcomes contract signed: 2018-09
Date contracts between all parties signed: 2020-12
Start of service provision: 2019-04
Anticipated end of service provision: 2023-03
Actual end of service provision: 2020-06
Anticipated completion date: 2023-06
Actual completion date: 2020-06
Dates notes: End date under SIB is 30/06/2020 - however, services continued under alternate funding arrangement
Total investment commitment currency: USD
Total investment commitment: 5000000
Total investment commitment (USD): 5000000
Maximum potential outcome payment: 11800000 USD
Maximum potential outcome payment (USD): 11800000
Maximum potential loss: 0.5
Maximum potential return: Maximum 12.5% p.a. return. 3% p.a. for first 2 years, years 3-5 dependent on outcomes. Target 7.1% p.a. return.
Configuration of the contracting parties: Direct Structure
Target population: Young people who are unemployed and experiencing multiple barriers to employment
Targeted number of service users or beneficiaries: 870
Targeted unit type: Individual