Helping low-skilled long-term unemployed people find stable jobs

February 3, 2018

Project details

In the Brussels region, there are close to 60,000 long-term (more than 24 months) unemployed people. This can have devastating effects. Long-term unemployment causes persistent poverty and reduces self-esteem. In addition, it comes at a high societal cost. In 2017, Actiris (the Brussels Employment Office), selected KOIS to investigate the feasibility of another Social Impact Bond. This time the bond should benefit the long-term unemployed.

Long-term unemployment: a vicious circle

Long-term unemployment can have disastrous effects on people and for society as a whole. The longer people are out of work, the more their skills and social networks tend to erode. This sends them into a downward spiral that makes it ever harder to find a new job.

%

probability to find a job within a year among long-term and low-skilled unemployed persons

Terms of the bond

Launch

2018

Duration

5 years

Amount

€2.2M

Expected return

7.5% IRR

The IOD method: PROACTIVELY ENGAGING SMES TO CREATE NEW JOB OPPORTUNITIES

KOIS and Actiris identified an innovative approach that was being implemented in the municipality of Forest: the IOD (Intervention sur les Offres et les Demandes; Intervention on Offer and Demand) methodology.

This unique method came to be in France about s20 years ago. It requires proactively engaging with SMEs to create new job opportunities. Additionally, it acts on specific points of professional exclusion such as discriminatory recruitment methods and the surge of short-term and part-time contracts.

The pilot for Brussels was started in July 2015 by the ‘Mission Locale pour l’Emploi’ in the Forest borough. They had a four-people team, and their results have been remarkable.

47% of the enrolled participants have signed a long-term employment contract.

Most of these positions would not exist, if it wasn’t for the IOD team’s active engagement with the employing companies.

By banning CVs and helping small enterprises define their recruitment needs, the IOD method precludes discrimination and helps grow the jobs market. Its results fly in the face of those who take for granted the end of the job market for unskilled workers.

Béatrice Delperdange

Head of Business Development, KOIS Brussels

Expected Impact of the DIB

beneficiaries by the end of the SIB

job contracts signed for a period of at least 90 working days

%

success (contracts signed) rate, vs 19% for the control group

Broad roll-out of the method thanks to proof of success via the SIB

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