Matt O'Sullivan (WA, Liberal Party) Share this | Link to this | Hansard source

We went into the 2019 election with a promise to the people of Australia that we would get more people into work. With a strong economy and a balanced budget we have continued to deliver on that promise. On this side of the chamber, we know that the best form of welfare is a job. Our commitment is providing Australians with opportunities to work, and this is unwavering. The Australian government's employment services program, delivered via jobactive, is the second-largest procurement of services to government outside of Defence, at a cost of over $7 billion. We have submarines, tanks and firefighter jets and then we have the employment services system that follows that—a sector solely focused on getting Australians, many of whom have significant barriers to employment, into work.

Jobactive has achieved some very positive results. It has achieved 1.5 million job placements from July 2015 to October 2019 and it continues to achieve around 1,000 job placements every single day. Across Australia there are 615,677 Australians on the jobactive case load as of 31 October 2019. This is a reduction of over 153,000 since the jobactive system was introduced in 2015 and a reduction of over 143,000 from the Job Services Australia case load when we came into government in 2013. There have been over 444,000 Indigenous Australians employed for longer than 26 weeks since the program started.

But, with this, it's important to recognise that the sector is far from perfect. This significant investment should garner world-leading results, but it's evident that there's still room for improvement. The 2019-20 budget includes an investment of $249 million over five years to trial key aspects of the new employment services model and extend the existing jobactive model to June 2022. But there are further reforms required.

If you are unemployed and require support, you need to go to Centrelink and register for Newstart. After registering, Centrelink will send you to an employment service provider, administered under jobactive, and the service provider will invariably enrol you in a training course that will increase your chances of securing employment. You'll be required to complete mutual obligation requirements, such as applying for 20 jobs per month and meeting regularly with a consultant working for the service provider. You'll continue to comply with your mutual obligations and then you'll continue to receive payments until employment is obtained. On the face of it, the system looks pretty good. You receive training to boost your chances in employment, you're consistently applying for job opportunities and you receive coaching by a consultant.

Prior to entering parliament I was chief operating officer of Generation One, an initiative founded by Andrew and Nicola Forrest to create employment for Indigenous Australians. Our program worked by turning the training and employment services system on its head. I discovered that the employment services sector actually wasn't quite living up to the investment that the taxpayer was pouring into it. It is significantly improved—I must stress that—under this Liberal-National government. It's certainly significantly better than the previous Job Services Australia system, which is well reported as being plagued with ineffectiveness, rorts and fraudulent behaviour. Jobactive is a darn sight better a system than Jobs Services Australia, but it can still be improved. You see, the training that jobseekers are required to complete is more often than not just training for training's sake, which doesn't necessarily prepare jobseekers for employment.

We also have an issue in that, on average, jobactive consultants have a case load of 148 jobseekers. Couple this with the burden of excessive administration and you remove the consultant's ability to provide the level of personalisation that's necessary to get people into work. Then you've got the jobseeker's requirement to complete 20 job applications per month. Whilst critical in fulfilling the mutual obligation requirements that they have, this doesn't achieve what it was envisaged to do. Rather, it places a burden on employers, demoralises jobseekers and encourages a tick-and-flick approach. The flaw in this system is that it not only removes the personal responsibility of jobseekers but it's also incredibly frustrating for employers in inhibiting their ability to source quality employees. All of this happens while the taxpayer foots the bill, but Centrelink is satisfied that the right boxes are being ticked.

So what do we do? Where do we go from here? We understand that delivering tailored support for jobseekers and employers will increase their chances of getting people into long-term employment. But, in order to take advantage of this model, we need to start investing in a platform that focuses more on data, integrated analytics, machine learning and greater collaboration and less on trivial training courses or application quotas. Prior to entering parliament last year, I was part of a team that delivered the I want to work report to the Commonwealth government. This review was initiated by the Minister for Employment, Skills, Small and Family Business, Senator Cash. The government was looking for ways that the employment services system could be improved. On this side we understand that the system can be improved. The review addressed the current Australian employment services system and identified ways that the system could change into the future. To conduct the review, we consulted over 1,400 jobseekers, employers and service providers, and, with every consultation, meeting and submission, it was evident that personalisation through data and analytics, adjacent to existing providers, was key to a successful future platform. Analytics could provide insight into local industries, providing information such as current employment opportunities, local trends and popular qualifications getting other jobseekers into employment.

We must have a system that ensures every action a jobseeker takes leads them towards a meaningful and long-term employment outcome. We can use data to inform them of what does and doesn't work. We know that 90 per cent of jobseekers use the internet to find work. We also know that a significant portion of jobseekers can find work independent of the current system. In fact, 80 per cent of jobseekers were able to find a job on their own. These individuals have an idea of what they want to do and how to get there. They should be given the digital tools necessary to help them to gain meaningful employment. If we reduced the pressure of case loads currently placed on consultants, it would allow them to spend more time providing support to the people who need it most. The future of our employment services system should be one that empowers individuals by providing them with a user-friendly digital platform that increases their engagement with local employers.

The Morrison government has taken the critical first steps in implementing structural reform by trialling, under the new employment services trial, a new digital system for jobseekers in two locations across Australia. Included in this is a new system of mutual obligation. Rather than simply requiring jobseekers to complete 20 job applications per month, jobseekers will have a flexible and tailored employment plan, with compliance managed through a points based system. This is innovative and I believe it's going to make a significant difference in people's lives. But we've got to wait and see how these trials go. The result of these trials will be instrumental in determining the future of the employment services sector in Australia. Taxpayers are investing a significant amount into this system. Jobseekers are investing their time and energy in preparing themselves and getting themselves into work, and employers need a system that matches their needs, with people trained to their standards and qualifications so that they can be productive in the workplace. But I'm proud to be part of a government that understands the importance of the employment services sector, which at any point in time services over 650,000 Australians. We know what we need to do, and the time for reform is now.