What I want to do…

1. Building a Transitional or Intermediate Labour MarketSub-theme: Intermediate Labour Markets (ILMs)Case Study: WISE Group

2. What I want to do… • What is an ILM • What is the rationale for ILMs • The history and types of ILM • The processes within an ILM • Case study: WISE Group • Key success factors and problems

3. What is an ILM? ILM refers to an approach whose aim is to provide a bridge between long term unemployment and the mainstream labour market

4. Key factors about ILMs… • Aim is to offer a way back to the world of work by improving employability of employees • Paid work on a temporary contract (usually 6 months or 1 year) with training, personal development and job search activities • Jobs are in ILM enterprises in additional activities ideally for local community development • Rely on packages of funding (government/local authority, European Social Fund, enterprise earnings)

5. Rationale for ILMs… • Some people are very excluded from the mainstream labour markets eg. Roma • Employers tend to recruit people already in work or out of work for short periods Therefore, • Need for ILMs so target group (eg. Roma) can gain a package of employability skills – experience, training, confidence, etc. • Also shortage of jobs – ILMs can keep people in work and training • ILMs can contribute to local regeneration and community development

6. History of ILMs… • First UK ILM created in Scotland in 1980s – WISE Group (est. 1983) • Rapid growth of ILMs across the UK in 1980s and 90s • Stimulated by Labour Government (since 1997) • Now ILMs in most areas of high unemployment • Range in size from small local projects to larger schemes • Usually strong local involvement

7. Types of ILM… Type One: organisation accesses funding; starts enterprise; employs management; employs ILM workers/participants; carries out work and contracts usually for social benefit (eg. WISE Group) Type Two: central organisation develops programme; accesses funding; employs core staff; contracts out delivery of ILM to other organisations in the community (eg. Glasgow Works)

8. Processes within an ILM… • ILM enterprise set up to tackle local needs • Participants/employees referred from other organisations and/or selection interview • Contracted employment (6-12 months) • Usually stop receiving state benefits • Settling in period…then work for 3-4 days/week; attending training; help in finding jobs • Leave and move on to paid employment – links with local employers

9. Case study: The WISE Group • Located in Glasgow (est. 1983) • Pioneer in ILMs – now big and complicated • Provides services to benefit the community – at first home insulation, landscaping, etc. – now childcare, education, recycling, etc • Secured contracts with local authority • Expanded rapidly in Scotland and NE England • 2000+ people move into work each year (2008) • Now more tailored programmes eg. with NHS

10. Key success factors… • Need clear objectives and strategy • Need to reach the right people – the LTU (eg. Roma) wanting to get back into work • Offering appropriate work for the target groups and the local needs and the local job market • Balance between working and training – include personal development eg. driving • Make it clear it is a job – right wage, timekeeping, discipline, etc • Help participants find job – cvs, interview skills, etc. • Develop a strong local partnership - employers • Keep track of performance – jobs, targets, etc.

11. Problems to watch out for… • A straying away from primary objective of “sheltered” employment - and setting up social and commercial enterprises • Making it compulsory – the employer/employee relationship breaks down; different difficulties… • Overly complex funding packages and administrative procedures • Not getting skilled and capable managers

12. Thank you! • Any questions? • Further information… www.idea.gov.uk www.jrf.org.uk www.thewisegroup.co.uk