Unemployed workers of all demographics are keen to get into the workforce, but there are certain barriers preventing them from achieving their full potential.
Measures, like increasing the income threshold for pensioners, helping more young people through traineeships and aiding with childcare costs for parents, can help us tap into a pool of underutilised talent. There’s more our government can be doing to support our unemployed.
In 2021, 272,000 Australians reported they were unable to participate in the labour force due to caring for children. One of the main contributors for this is the increasing cost and lack of access to suitable childcare. We need to introduce stronger policies to ensure childcare is more accessible for all.
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In 2021, 272,000 Australians reported they were unable to participate in the labour force due to caring for children. One of the main contributors for this is the increasing cost and lack of access to suitable childcare. We need to introduce stronger policies to ensure childcare is more accessible for all.
272,000 Australians reported in 2021 that they were unable to participate in the labour force due to caring for children (Australian Government Productivity Commission, 2022).
More needs to be invested in the childcare subsidy to help relieve some of the financial burden on families and help get more parents back into the workforce.
More affordable childcare enabling more parents to return to the workforce sooner and work more hours.
Last year, 272,000 Australians across the country reported they weren’t in the labour force due to caring for children. While childcare is an obvious solution, 26.7% of people said they weren’t able to afford the additional cost.
We need to introduce stronger policies to ensure childcare is more accessible for all. One of the ways we can do this is to invest more in the childcare subsidy, particularly for those with lower income levels. This will help assist parents in returning to the workforce, especially women who make up the majority of full-time parents (Australian Bureau of Statistics, 2021).
With Australia’s current skills and labour shortage, there’s no better time to ease the financial burden of childcare for households and help more parents get back to work. Improvements to the childcare system have the potential to help Australia reap the productivity benefits that come from more parents participating in the workforce.
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Currently, the publicly-funded employment system is difficult to use, resulting in a lack of employers utilising it. We need to build confidence in the new employment system launching in mid-2022 to connect unemployed Australians with employers effectively.
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Currently, the publicly-funded employment system is difficult to use, resulting in a lack of employers utilising it. We need to build confidence in the new employment system launching in mid-2022 to connect unemployed Australians with employers effectively.
Not enough employers currently use the publicly-funded services to the job-seekers most in need of a job have less opportunities.
We need to build confidence in the new employment system launching mid-2022 to more effectively connect unemployed Australians with employers.
This will help employers find the employees they need and connect job seekers to appropriate opportunities.
Currently, less than 5% of job vacancies are filled by employers using the publicly-funded employment system. From 1 July 2022, there will be a new employment services system in operation, Workforce Australia. It is essential to the Australian economy and all of the people currently unemployed and on welfare that the number of employers using the new system increases dramatically so that we can better tap into the pool of unemployed.
Workforce Australia provides a value-added service to employers through the effective shortlisting of suitable candidates. It also connects unemployed Australians directly to where job vacancies exist. However, as this is a new employment services offering, there will need to be a certain level of confidence in the system for employers to utilise it.
Once we can get the new system firing on all cylinders, the employment service for people with disabilities should be reintegrated into the core employment system. This will create a more effective single contact service for employers to maximise the value of the reforms being made.
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The current Youth Jobs PaTH program is designed to help job seekers undertake training, work trial and secure a job, however it’s not working as intended. Many participants are undertaking the employability training but are still not able to secure work experience or a job. We need to replace the PaTH program with a new initiative, Training To Work.
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The current Youth Jobs PaTH program is designed to help job seekers undertake training, work trial and secure a job, however it’s not working as intended. Many participants are undertaking the employability training but are still not able to secure work experience or a job. We need to replace the PaTH program with a new initiative, Training To Work.
The current Youth Jobs PaTH program, which is meant to help job seekers undertake training, work trial and secure a job, is not working as intended. Many participants are undertaking employability training but are still not able to secure work experience or a job.
The current Youth Jobs PaTH program needs to be replaced with Training to Work, a new initiative that requires training to take place only when linked to work experience or a job.
This would help get more Aussies trained and in the workforce, encouraging participation and helping to close the skills gap.
Youth Jobs PaTH (Prepare, Trial and Hire) is a three-step initiative designed to help young people gain invaluable skills and work experience. It also encourages businesses to trial young workers by supporting them with a financial incentive when they hire. Unfortunately, many Youth Jobs PaTH participants are allowed to undertake the Prepare employability training as a standalone experience.
To avoid participants receiving no job prospects, we need to revert to the original initiative ACCI proposed called Training To Work. This replacement program would require the training to be linked to work experience in a traineeship style arrangement, where the training and work happen concurrently. Even if the work experience and training don’t convert to a traineeship with the host employer, the combination of structured vocational training and experience is far more likely to lead to a job outcome than the current program.
Training to Work builds on the success of some of the industry pilots that have offered alternatives to the main PaTH program. It’s not just young Australians that need our help training and getting into the workforce though. Training To Work should be available to other demographics who are unemployed, like mature age job seekers and people with disabilities to offer better opportunities for all.
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Older Australians are currently capped at earning $480 a fortnight before their age pension is reduced. This acts as a huge deterrent for those looking to return to the workforce. We need to raise the income-free threshold and work bonuses to allow older Aussies to keep more of their pension while earning income.
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Older Australians are currently capped at earning $480 a fortnight before their age pension is reduced. This acts as a huge deterrent for those looking to return to the workforce. We need to raise the income-free threshold and work bonuses to allow older Aussies to keep more of their pension while earning income.
Currently, older Australians can only earn up to $480 a fortnight before their age pension is reduced and the rules around what income they earn are complicated. This is preventing many who would be keen to return to the workforce from doing so.
The income threshold for aged pensioners needs to be increased to encourage them to return to the workforce for at least two to three days per week without their pension being affected.
This can help get more Aussies back into the jobs they want and help businesses grow to create even more employment opportunities.
Older Australian workers with invaluable experience and skills are much needed to boost our workforce. However, the current income-free threshold means their pension will be reduced if they make over $480 a fortnight, which acts as a huge deterrent. The wealth of knowledge and experience that our aged pensioners could bring back into our workforce would not only help close the skills gap but also encourage knowledge to be passed down to younger generations.
This policy not only makes sense but is well supported by the community. In a recent survey published in the Sydney Morning Herald (26 March 2022), 61% of Australians indicated their support for a plan for retirees to work unlimited hours and not lose any of their pension, with only 26% against.
By raising the income-free threshold and work bonus to allow older Australians to keep more of their pension while simultaneously earning income, we can make a real difference in their lives. This can also help alleviate stress for businesses that are struggling to find staff.
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