Access to decent work is crucial for boosting productivity and economic stability in Australia. A parliamentary inquiry report from 2023 highlighted the inefficiency of the current national employment services system, describing it as “harsh but true” that Australia lacks a coherent framework. Despite initial optimism that the federal government would reform this dysfunctional system, two years later, little progress has been made, leaving over one million Australians searching for employment.
The consequences of prolonged unemployment are severe. Approximately one in five families in Australia experiences unemployment, which adversely affects health, housing security, and children’s education. The federal government allocates nearly $2 billion annually to contract 114 service providers for various employment programs, including Workforce Australia and the youth-oriented Transition to Work program. Unfortunately, only one in five participants in these services secures and retains a job for six months.
The report criticizes a system focused more on compliance than on genuinely aiding job seekers. With a complex array of financial incentives, the current structure has become inflexible, failing to accommodate the diverse needs of today’s workforce. A disproportionate amount of resources is wasted on bureaucratic requirements, diverting attention from the essential task of helping individuals secure meaningful employment.
The Brotherhood of St. Laurence (BSL) has observed firsthand the transformative potential of stable jobs through its community work across Australia. Instead of serving as a bridge to economic participation, employment services have devolved into a “compliance machine” lacking effective outcomes. BSL collaborates with both the Victorian and federal governments, as well as philanthropic partners, to provide employment support in areas like Broadmeadows and Frankston, outside the limitations of the mainstream employment services system.
Many individuals report frustration with the current system. For instance, a young person seeking a pre-apprenticeship in construction found himself pressured into a Certificate III course that better served the financial interests of his employment provider, jeopardizing his opportunity to gain the skills that are in high demand. Similarly, a 19-year-old, recovering from family violence, was left with only brief phone calls to track job applications, receiving no substantial support for her recovery or skill development.
These experiences are not isolated; they reflect a systemic failure that perpetuates poverty and disillusionment among job seekers. The system’s focus on compliance instead of capability has left both job seekers and employers dissatisfied. Notably, many employers express frustration with the Workforce Australia services, even as they struggle to fill critical roles in sectors such as care, construction, and manufacturing.
With the findings of the parliamentary review now two years old, the federal government is urged to enact meaningful reforms rather than superficial changes to contracts or programs. Comprehensive reform is essential not only for addressing the dysfunction but also for aligning with Australia’s productivity goals and aspirations for full employment. This reform could represent a significant step towards improving the nation’s economic future.
To achieve this, the government must reconsider how it contracts service delivery, eliminate punitive measures that hinder job seekers, and ensure that support is tailored to meet the needs of individuals. The focus must shift from merely placing people in jobs to enhancing lives, strengthening communities, and driving national productivity.
Two years of inaction have underscored the urgency for reform. Australia stands ready to undertake the necessary work to improve its employment services, and the time to act is now.
