Jest - assert after context update - reactjs

Question

I have a state that looks like this:
const state = {
departmentIds: [],
employeeIds: [],
};
This state is fed into a context with a function that updates it. So my consumer ends up looking like this:
const {
state: {departmentIds, employeesIds},
updateReport,
} = useReportContext();
The update function is called inside a onChange handler:
const onChangeHandler = (departmentIds: number) => {
updateReport({departmentIds});
};
This is the most important part: Inside my component I have a boolean that heavily depends on these context values. It looks like this:
const shouldClearSelection = departmentIds.length > 0;
This boolean is used in a useEffect for the following:
useEffect(() => {
if (shouldClearSelection) {
updateReport({employeesIds: []});
}
}, [shouldClearSelection, updateReport]);
What I need is to test the state so that if departmentIds are added, the updateReport is called with {employeesIds: []}.
I tried everything honestly, however I still don't manage to fully understand jest methods and how to properly mock. This is the solution I tried the most expecting it'd work:
describe('Departments', () => {
test('should clear employee selection', async () => {
const updateReport = jest.fn();
// #ts-ignore
jest.spyOn(context, 'useReportContext').mockImplementation(() => ({
state: {
departmentIds: null,
employeesIds: [1, 2, 3, 4],
},
updateReport,
}));
render(<Departments />, {
wrapper: AppProvider,
});
updateReport({departmentIds: [1]});
// departmendIds.length is 1 now, thus making the shouldClearSelection true and executing the useEffect.
await waitFor(() => {
expect(updateReport).toHaveBeenCalledWith({employeesIds: []});
});
});
});
However when I log values from the context I never see it update, and the test of course always fails.