Summary:

Workforce Australia (WFA) commenced in 2021 as a result of the findings of key reviews into the Jobactive program. Under the new model performance criteria have addressed some key failures of the previous systems. The new system’s objectives are:

• moving participants into sustainable employment,
• progressing participants towards employment,
• providing high quality services to participants and employers, and
• an annual provider licence review.

However the changes do not address some of the underlying flaws in how services are delivered to job seekers.

The abolition of the publicly funded Commonwealth Employment Services in 1998 hasn’t resulted in services providing improved employment outcomes. Welfare changes have increased numbers on Job Seeker without recognising the type and level of assistance these groups need. The one-size-fits all model has proved ineffective for the most hard to help. This remains exacerbated by the low level of payments for those on benefits, which must be addressed urgently.

Women’s outcomes in employment services have been disappointing, largely as this approach does not address barriers to employment that women experience. It remains to be seen if WFA will address these shortcomings.

Mutual obligations requirements and sanctions have become more harsh over time and this does not appear to have been adequately addressed under the new WFA model.

Funding for employment services has decreased over time. Australia has one of the lowest funded employment services in the OECD. There is no significant increase in funding for WFA as the new model is largely funded from savings resulting from the introduction of a new digital platform for easy to place participants. The new funding model will need to address this deficit, especially as unemployment rates increase from the historically low levels post pandemic.

The use of employment services by employers has decreased under Jobactive, and job seekers obtaining employment were often placed in temporary, short term and low paid part time jobs as a result of the fees and outcomes structures. WFA new objectives address employer engagement and focuses on sustained employment with a fee structure that rewards longer term outcomes.

Disadvantaged jobseekers need time and high levels of support to become job ready. The challenge spans employment, income support, education, health, housing and child care. We recognise the specialist services in WFA, but there needs to be a specific fee structure for partnerships across jurisdictions with funds allocated for local initiatives.

Reporting on participants experiences, outcomes, provider performance, sanctions and penalties needs to be more timely and disaggregated by gender and vulnerable groups status.

 

READ FULL PAPER