There was a time when Australia had a federally funded employment service that found jobs for people across the country. It was established in 1946 and helped successive governments deliver full employment for three decades post World War II. It was eventually privatised in 1998 by the Howard Government, which introduced the Job Network. Under that new scheme, independent providers from private and community sectors competed to find jobs for the unemployed. That change also intensified the use of mutual obligations, which forced unemployed Australians to complete often pointless activities in return for receiving unemployment assistance.
While unemployment in Leppington is below the regional and State averages, the south-west Sydney region has some of the highest unemployment rates in New South Wales. It is therefore critical that we have an effective and functional employment service whose purpose is to find meaningful, long-term employment for jobseekers, not punish them. The Federal House Select Committee on Workforce Australia Employment Services recently conducted a parliamentary inquiry into rebuilding employment services. The committee's report—handed down late last year—contains 75 recommendations, backed by extensive analysis, outlining crucial changes required to improve the system.
It found that Australia currently lacks an effective national employment services system, instead operating an outsourced, fragmented social security compliance management system. The report calls for a comprehensive overhaul of the system, including reducing privatisation, establishing a stronger government role and implementing more tailored approaches to address individual needs. Some of the key recommendations include transitioning to a more flexible service model, enhancing employer engagement, re-professionalising the workforce and establishing a rebuilt public sector core called Employment Services Australia to steer the system. The report strongly criticised Australia's current employment services system, highlighting inefficiencies and negative impacts on jobseekers and employers due to rigid mutual obligation requirements and excessive compliance measures.
The proposed new service model acknowledges clients' diverse paths to employment, social integration and economic involvement. The report also highlights the importance of introducing digital literacy training and multi-language online services to improve accessibility. These reforms emphasise a shift towards meaningful and sustainable employment and addressing unique challenges faced by migrant and refugee communities, such as those in my part of the world. It would also introduce specialised services such as the youth employment service, tailored support for First Nations and culturally and linguistically diverse populations, as well as an overhauled service tailored to assist ex-offenders.
The goal of the proposed changes is to create a more supportive and effective employment services system that provides better outcomes for all Australians, irrespective of their background or location. These changes are most welcome in Leppington and the wider south-west Sydney region, which is an area characterised by significantly higher levels of people from culturally and linguistically diverse backgrounds. There is also a higher concentration of youth unemployment, especially since the COVID-19 pandemic. The region is also characterised by Indigenous unemployment that is disproportionately higher than the New South Wales and national unemployment average rates.
I support the development of tailored youth services and programs to design effective pathways for education, training and employment that meet local needs. It is crucial to create opportunities for migrant and refugee individuals to acquire the necessary skills and language proficiency for available job openings. Since the release of the report, the Federal Government has expressed a commitment to reform our employment service system. The approach taken by the Albanese Government is to view employment services as an investment, not a burden. Bolstering the workforce is what is needed, not making it harder for disadvantaged people to get employed.
The Federal Government has also introduced an employment white paper that highlights eight principles to guide its response to the inquiry recommendations. I look forward to seeing the changes in employment services and I commend the Federal Labor Government for viewing employment services as it ought to—as an opportunity. Combined with this Government's focus on revitalising the New South Wales workforce, addressing skills shortages and rebuilding local manufacturing, we may finally see the end of John Howard's legacy, which has seen many hardworking Australians fall through the cracks.
