Jobseekers Struggle for Long-Term Work Amid Rising Costs

Recent reports reveal a troubling trend in Australia’s employment services, with nearly 90% of jobseekers struggling to secure long-term positions, despite significant government expenditure on private job agencies. Documents from the Department of Employment and Workplace Relations indicate that a mere 11.7% of jobseekers were able to find sustained employment through these agencies in the last financial year.

The annual report highlights that service providers can claim publicly funded outcome payments after clients remain employed for four, twelve, and twenty-six weeks, irrespective of who actually facilitated the job placement. Guardian Australia previously reported instances where jobseekers who managed to find jobs independently were pressured into submitting their payslips so providers could access taxpayer funds.

The government has set a target for 15% of jobseekers to reach the twenty-six-week employment benchmark. Unfortunately, this objective has not been achieved since the inception of Workforce Australia in 2022. According to the report, the outcome rate has remained below this target, with the most recent figure standing at 13.2% for the twelve-month period ending June 30, 2024. Furthermore, an alarming downward trend in these rates has been observed over the past two years.

While fewer jobseekers are securing employment, public funding for these services has escalated, with the cost per successful employment outcome reaching $3,575. This figure is derived from a caseload of 590,965 individuals during the reporting period.

In a bid to address grievances, the department introduced a complaints hotline in October 2024, which has logged 8,320 complaints throughout the year, most of which were resolved on first contact. Jeremy Poxon, a welfare advocate at the Antipoverty Centre, expressed concerns regarding the effectiveness of the employment services, stating that the system is failing “en masse” to assist individuals in finding meaningful work.

Poxon emphasized that the government is well aware of the system's inadequacies in fulfilling its primary role of helping people secure jobs. He highlighted the contrast between the punitive measures in place and the support offered to jobseekers. “The data shows the system is better at punishing people than helping them into employment,” he noted, criticizing the government’s continued financial investment in a failing system.

Amidst these challenges, it has been reported that Centrelink has threatened payment suspensions to jobseekers at an alarming rate of five per minute. This alarming statistic has raised concerns among social security experts, who argue that such actions may be illegal. Poxon pointed out that this punitive approach underscores the government’s priorities in managing unemployment.

The annual report attributes the low employment outcomes partly to the state of the labour market, noting a “growing skills mismatch” between available jobs and the qualifications of jobseekers. It states, “Throughout the reporting period, the labour market reflected demand for higher-skilled jobs, rather than low-skilled jobs that are most accessible to participants in Workforce Australia Services.”

Poxon referred to this mismatch as the “great elephant in the room,” emphasizing that the current workforce is not adequately equipped to meet the evolving demands of employers. As the Australian economy shifts towards higher-skilled roles, it becomes increasingly critical for jobseekers to receive training and support that aligns with these market needs.

As Australia grapples with high levels of unemployment and a struggling job market, the findings from the Department of Employment and Workplace Relations signal a pressing need for reform in the country’s employment services. With millions being spent and outcomes remaining dismal, it is essential for the government to reassess its strategies and ensure that funding is directed toward effective support systems that genuinely assist Australians in securing long-term employment.