'Fundamental change is needed to better support the most disadvantaged'
Businesses across Australia have welcomed the recommended reforms introduced in the recently released Parliamentary review on the Commonwealth Employment Services System.
The report, tabled last week, recommended a large-scale reform that will rebuild the system that it condemned as "inefficient."
Among the recommendations include the introduction of a dedicated employer-focused service as a one-stop-shop in the rebuilt Commonwealth Employment Services System.
It would be delivered by the Employment Services Australia's regional hubs and is aimed at delivering greater focus on matching jobseekers to vacancies, working with employers for recruitment and workforce development support, and supporting employers to deliver better training, among others.
The Business Council of Australia (BCA) said it welcomes the inclusion of a "demand-led approach" to addressing the workforce needs of businesses.
"The recommendation to create a dedicated employer-focused service, as a one-stop-shop for businesses is supported, along with a regional approach to partnering with providers, employers and other key stakeholders to deliver targeted demand driving employment projects," it said in a statement.
Integrating job marketplaces
Meanwhile, the report also urged the government "seriously consider" a proposal from SEEK to integrate digital employment marketplaces, such as SEEK, LinkedIn, and Indeed, into the system.
"Under this model, employment services would focus on delivering a unique value proposition to employers including capacity building, recruitment, and HR support," the report said.
The BCA said it welcomes this recommendation to partner with digital marketplaces instead of seeking to create duplicate platforms.
"This would allow government resources to be redirected from a jobs marketplace, which is not meeting the needs of jobseekers or employers, towards support services for jobseekers with more complex needs," the BCA said.
'Inefficient' system
A total of 75 recommendations were listed in the report tabled by the Select Committee on Workforce Australia Employment Services, which criticised the current system.
"The current system is inefficient, tying clients and providers up in red tape, driving away businesses, and effectively making too many people less employable by requiring them to do silly courses, pointless activities or apply for jobs they simply cannot do," said Member of Parliament (MP) Julian Hill, the chair of the committee, in a statement.
The significant flaws on the system listed in the report can no longer fixed by mere tweaks to policies, according to Hill, underscoring that the system has left 150,000 people stuck for over five years.
"It's harsh but true to say that Australia no longer has an effective coherent national employment services system; we have an inefficient outsourced fragmented social security compliance management system that sometimes gets someone a job against all odds," he said.
Over $9.5 billion will be spent over the next four years for the employment system despite being ineffective, according to Hill, stressing that the current system must be changed.
"Fundamental change is needed to better support the most disadvantaged in society and to get better value for money," he said.
