Earn
Private entities to profit as jobactive requires review
Australia’s privately run employment services are set for a windfall, as the hundreds of thousands of people left without employment due to the COVID-19 economic impact sees them cash in, new research has found.
Private entities to profit as jobactive requires review
Australia’s privately run employment services are set for a windfall, as the hundreds of thousands of people left without employment due to the COVID-19 economic impact sees them cash in, new research has found.

According to a paper released by Per Capita, the Australian taxpayer will foot a $210 million bill, with the think tank calling for a review of the current system.
Under the current system, about 40 privately run employment agencies and not-for-profits receive fees for each jobseeker placed on their books, as well as incentives for those on their books that are placed into a job.
“A review is needed to design employment services that are fit for the post-COVID-19 unemployment scenario and that are also responsive to the long-term economic challenges ahead,” said report author Simone Casey.
“The focus of the review should be a consideration of how to provide effective job counselling and case management as well as ensuring the best online tools for job searching are accessible to all.”

“It should identify the services and strategies needed to prevent youth unemployment and to support those who are most vulnerable to ongoing insecure employment.”
The think tank said the jobactive model already in use is under significant reform due to high demand, with the “new employment services model” created not fit for purpose post-COVID-19.
“However, it is Per Capita’s view that neither the existing jobactive system nor the new employment services model is a good fit for the post-COVID-19 unemployment scenario. This is because both models are hamstrung by a dependency on job outcome payments, which leads to under-investment in the needs of people most at risk of long-term unemployment,” the paper stated.
Instead, Per Capita said there is a need for broader partnerships that secure the supply and demand for labour, stimulate job creation projects and build a labour market that is resilient to economic shocks.
About the author

About the author


Salary
The financial benefits of a diversified income stream
In today’s volatile economic environment, relying solely on a single source of income can be risky. Diversifying your income streams can provide financial stability, reduce the risk of financial ...Read more

Salary
Despite losing top spot, Elon Musk rakes in $400,000 hourly
Elon Musk, the entrepreneur known for his involvement in a wide range of innovative and technological businesses, has recently been dethroned as the wealthiest individual in the world, with Bernard ...Read more

Salary
Rising unemployment and skill shortages prompt Australian businesses to look globally for talent
Australia has witnessed its unemployment rate surging above 4% for the first time in two years, revealed by the latest Labour Force data. Read more

Salary
New findings link job mobility hurdles to stagnant wage growth
Recent research from the e61 Institute has unearthed significant links between slow wage growth in Australia and obstacles to job mobility, including non-compete clauses, complicated occupational ...Read more

Salary
Employers scrambling to prevent workplace brain drain
As workplace managers face a swiftly evolving employment market that’s increasingly favouring the demands of white-collar employees and jobseekers, bosses are falling under mounting pressure to ...Read more

Salary
Unions back Albanese’s pledge to close gender pay gap
An electoral promise from Labor to make gender pay equity an objective of the Fair Work Act has been hailed as a “watershed moment” from industry peak bodies who have traditionally advocated for ...Read more

Salary
Coles asked to disprove $115m in alleged wage theft
One of Australia’s biggest supermarkets faces allegations that it underpaid more than 7,500 employees a total of $115 million. Read more

Salary
Gen Z left behind in progress to gender equality
Women under 25 may emerge from the pandemic in a worse financial position than when it began, new research has shown. Read more

Salary
The financial benefits of a diversified income stream
In today’s volatile economic environment, relying solely on a single source of income can be risky. Diversifying your income streams can provide financial stability, reduce the risk of financial ...Read more

Salary
Despite losing top spot, Elon Musk rakes in $400,000 hourly
Elon Musk, the entrepreneur known for his involvement in a wide range of innovative and technological businesses, has recently been dethroned as the wealthiest individual in the world, with Bernard ...Read more

Salary
Rising unemployment and skill shortages prompt Australian businesses to look globally for talent
Australia has witnessed its unemployment rate surging above 4% for the first time in two years, revealed by the latest Labour Force data. Read more

Salary
New findings link job mobility hurdles to stagnant wage growth
Recent research from the e61 Institute has unearthed significant links between slow wage growth in Australia and obstacles to job mobility, including non-compete clauses, complicated occupational ...Read more

Salary
Employers scrambling to prevent workplace brain drain
As workplace managers face a swiftly evolving employment market that’s increasingly favouring the demands of white-collar employees and jobseekers, bosses are falling under mounting pressure to ...Read more

Salary
Unions back Albanese’s pledge to close gender pay gap
An electoral promise from Labor to make gender pay equity an objective of the Fair Work Act has been hailed as a “watershed moment” from industry peak bodies who have traditionally advocated for ...Read more

Salary
Coles asked to disprove $115m in alleged wage theft
One of Australia’s biggest supermarkets faces allegations that it underpaid more than 7,500 employees a total of $115 million. Read more

Salary
Gen Z left behind in progress to gender equality
Women under 25 may emerge from the pandemic in a worse financial position than when it began, new research has shown. Read more