Federal Government set to shake up failing employment services in ‘complete rebuild’ with new triage system

Australians looking for jobs will be given more tailored support in a generational overhaul of the nation’s poorly functioning employment services.

The Government pours $2 billion every year into the employment services system but levels of long-term unemployment have been persistently high.

Workplace and Employment Minister Amanda Rishworth will tell the National Press Club on Wednesday that too many people are falling through the cracks and the current system is too inefficient.

A year-long review of the system handed to the Government in November 2023 painted a picture of a system that wasn’t working for jobseekers, employers or the service providers supposed to be connecting them.

It found that the services meant to help people find jobs were overly punitive and needed a complete rebuild.

Ms Rishworth said it had also become clear that the generic, one-size-fits-all approach didn’t work for employers either, who were frustrated by being sent unsuitable candidates because providers didn’t understand the needs of local businesses.

The Minister will outline plans that have been in the works for the past two years for a new system where people are triaged into one of three streams, instead of being faced with a one-size-fits-all service.

Those who are ready to work and just need a bit of help finding the right job will use a digital service; targeted provider-led support will be given to people who need help to build up their skills and confidence; and those who face more complex barriers to working will be given intensive support.

“This is a major positive step for the over one million Australians who access this system each year, by ensuring they will get the right support at the right time,” Ms Rishworth will say, according to a draft speech where she calls the changes the biggest shake-up in 30 years.

“And it will deliver improved value for money, by ensuring resources are directed where they are most needed.”

As well as the new streaming system, standard mutual obligations placed on job seekers to continue receiving welfare will be replaced with “effective, fair and proportionate” requirements that reflect how close they are from getting back into work.

“For too long, our public debate has been stuck in a conversation about whether mutual obligations are too hard, or too soft, when the real question should be: are mutual obligations activities actually helping people get into work?” Ms Rishworth will say.

“Unfortunately, all too often, the answer is clearly ‘no’.”

While the minister will unveil the broad shape of the new employment services system on Wednesday, there is still consultation and work by an expert advisory panel to come to flesh out its details.