The Minister for Employment Participation, Brendan O’Connor, today outlined how the Rudd Government’s new employment services would help job seekers off income support and into sustainable employment.
During a Ministerial Statement to Parliament today, Mr O’Connor said the Government believes the key to addressing barriers to securing employment for many Australians was to provide them with vocational skills and other support to find and keep a job.
"We recognise that this is critical, not only to the wellbeing of those Australians who are looking for work, but to improve the economic and social circumstances of their families and of their communities," Mr O’Connor said.
"It is also critical to our future productivity growth and the economic prosperity of the country."
Mr O’Connor said the current system was no longer addressing the needs of job seekers or of employers seeking skilled labour.
"Over the last 10 years many thousands of job seekers have become increasingly detached from the labour force," he said.
"The Job Network has failed disadvantaged job seekers who have needed assistance to overcome barriers to employment and to gain the skills that employers need.
"This is reflected in Departmental research which shows that almost half the people on benefits in 2001 were still unemployed in 2007. For young women with little education the situation was even worse – three in four were on benefits in 2001 and still on benefits in 2007."
Mr O’Connor said the new employment services which begin on July 1, 2009 would have stronger links to training and education with 238,000 extra training places available for job seekers over the next five years under the Governments Productivity Places Program.
"This new focus on what employers need will be a hallmark of the reformed employment services."
Mr O’Connor said the Government has committed $6 million over the next year to fund Employer Brokers as well as a $41 million fund to encourage providers to develop new and better practises.
He said the new employment services will be supported by a fairer and more effective compliance system designed to secure participation and engagement.
"Job seekers will lose a day’s income support for every day they fail to attend a required activity without a reasonable excuse, just as they would in the workforce," he said.
"The new employment service will provide a tailored individualised response to each job seeker. It will focus on the most disadvantaged job seekers neglected by the previous government.
"It will emphasise training and work experience. It will deliver the work ready job seekers employers need."