Third-sector services prove more effective at helping the long-term unemployed in deprived areas

New research reveals that 'third-sector' services, such as those run by housing associations, are far more effective than government work programmes at helping the long-term unemployed in deprived areas.

The study, led by the University of East Anglia (UEA), investigated the impact of alternative support services and recommends key strategies for helping individuals move closer to employment and improve their overall wellbeing, using a person-centred, strength-based, and long-term approach.

Published in the Journal of European Social Policy, it highlights three crucial ingredients for success:

• Focusing on strengths: rather than dwelling on limitations, successful programmes start with the skills, aspirations, and strengths of the individuals, building on their capabilities to help them thrive.
• Long-term commitment: the report underscores the importance of consistent, ongoing support - helping individuals navigate the transition from long-term unemployment to stable employment, with reliable partners invested in their success.
• Locally embedded services: by investing in services that are rooted within deprived communities, organisations can create valuable networks with other support services, local businesses, and potential employers, fostering opportunities for employment in the area.

Despite the findings suggesting that government programmes could be improved by adopting elements of these alternative approaches, the researchers say they are ill-equipped to deliver the personal, sustained, and community-centred support needed to help the hardest-to-reach individuals in deprived areas.

The research calls for public investment to shift towards third-sector organisations, such as housing associations and social enterprises, that have a proven track record of offering services anchored in the realities of long-term unemployment. These organisations are uniquely positioned to forge long-term relationships with vulnerable individuals and provide a holistic, adaptable support system.

Our research shows that tackling long-term unemployment in deprived areas is not about delivering 'a' job that acts as turning point for the long-term unemployed. Instead, it is about forging a long-term relationship that builds on where people are now, their realities and their aspirations.

This means re-orientating services towards optimising the 'distance travelled' by vulnerable people on their pathways from unemployment towards work, rather than maximising the number of job-offers or start-ups they deliver."

Zografia Bika, report's lead author, Professor, UEA's Norwich Business School

This non-sanction-based approach requires greater investment and resources than traditional government work-first programmes, but the findings suggest it offers a far more sustainable solution and has a much greater chance of effectively helping.

The most well-suited organisations will combine an existing local presence, strong relationships with the long-term unemployed, and commitment to people-centred services characterised by learning and adaptability.

This could include offering more role modelling, mentoring, and follow-up as well as helping to overcome complex barriers, such as childcare, physical and/or mental health problems, addiction, and homelessness.

Housing associations, for example, are involved in brokering local links and partnerships with potential employers, regeneration opportunities, accredited training providers, colleges, and employment agencies and building on existing structures or resources to redirect them to the target group and deprived areas.

The study drew on interviews with those who deliver and use these services, which were conducted as part of a five-year (2018-2023) EU-funded project led by housing associations developing micro enterprise and employment support services in deprived neighbourhoods in Northwest-France and Southeast-England.

Through this project, by 2022 more than 4,500 adults who were 'furthest from the market' - either economically inactive or out-of-work, in insecure jobs, at risk of redundancy, or with enterprises that have failed - completed at least 12 hours of training. Of the 6,259 clients who began training, 16% started a business, 18% had a new job, and 7% had enrolled in further education. 

The English housing associations were particularly effective at working with retailers or employers where new stores and factories - and so jobs - opened locally. In the most successful cases, employers guaranteed interviews for specified numbers of local clients who completed training for these positions: the housing associations selected the client, coached them, and supported required training, such as security/food hygiene certificates.

Prof Bika added: "Alternative approaches to moving people closer to work value all that can happen in the employment journey, including setbacks and near misses that are seen as opportunities for learning and building resilience."