The job network and underemployment

Abstract

The paper notes how long-term unemployment has been replaced with long-term underemployment and examines the role of the Job Network in this new environment. The paper discusses how the structure of unemployment has changed, how the Job Network has evolved and comments on its performance. It is noted that the Job Network has become more and more driven by tightly specified processes and services supported by an ever tighter compliance regime. This business model has much in common with franchising and this analogy is used to interpret the observed outcomes and the concerns expressed by providers and other interested parties. The paper concludes that there are some inherent problems with the franchising model and suggests that less prescriptive arrangements may be preferable.