The Centre for Policy Development (CPD) welcomes the Federal Government’s response to the final report of the House Select Committee on Workforce Australia Employment Services.
CPD is pleased to see the government recognise the shortcomings of a one-size-fits-all, compliance-driven approach to training and employment. Our research highlights that an overemphasis on mutual obligations and compliance, coupled with misguided incentives that focus providers on short-term outcomes, is failing jobseekers. We are encouraged by the government’s agreement on the need for significant reform and CPD encourages bold, ambitious action.
This won’t be a short-term fix, and simply tinkering at the edges is unlikely to deliver better outcomes. A whole-of-system approach will be required. Government must play an active role in shaping and supporting the system, fostering a culture of continuous improvement and innovation underpinned by ongoing research and evaluation.
The Select Committee’s findings align closely with CPD’s research – Australia’s current employment services system does not cater to the diverse needs of individuals and communities, and fails to engage with local employers. The system fails to build jobseekers’ capabilities and confidence to find long-term employment, instead leading to short-term, insecure job outcomes. Those facing complex barriers are left behind, perpetuating a cycle of poverty and disadvantage.
CPD recommends a shift towards a model tailored to local conditions and individual needs, focusing on skills and training for quality jobs and investing in employers to create opportunities. This should be a priority for the government, particularly considering the rising Workforce Australia caseload. Two-thirds of participants have been on the books for more than 12 months, and 160,000 for more than five years.
We urge the government to follow the recommendations of the Select Committee to develop a roadmap to a rebuilt employment services system by the end of 2024. This roadmap should contain the kind of ambitious reforms CPD has consistently recommended over the course of the inquiry.
Centre for Policy Development CEO Andrew Hudson underscored the need for ambitious reform and active government involvement.
“Government needs to get back in the game, on the side of people, providers, employers and communities.
“CPD wants to see government connect with people and communities, building on their strengths rather than punishing people who don’t comply with complex unemployment rules.
“We have confidence the government is up to the task, and are pleased to see their commitment to long-term, systemic reform.
“The only way we will achieve the Australia we want, that provides the services and support people need, in the way they need, is to pursue ambitious, long-term change.”
