Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

Employment Policy Convention, 1964 (No. 122) - Australia (Ratification: 1969)

The Committee notes the Government’s report received in September 2009, including replies to the matters raised in its 2007 direct request, evaluation data concerning the Welfare to Work reforms, and further information provided by the governments of South Australia and Western Australia. The Committee notes the comments received from the Australian Council of Trade Unions (ACTU).

Employment trends and active labour market measures. The Government indicates that the effects of the global economic crisis in Australia resulted in an increase in the unemployment rate as redundancies grew, skills shortages remained in particular industries and some locations, and certain industries faced these issues combined with the effects of an ageing workforce. The Government reports that it responded with a comprehensive package of programmes and employment services reforms. The Committee notes that Australia’s unemployment rate has risen from 3.9 per cent in February 2008 to 5.8 per cent in July 2009, an increase of almost 40 per cent and the highest rate in almost six years. In its 2007 direct request, the Committee recalled that the Convention has a critical role to play in combating poverty and promoting social cohesion. The Government indicates in its report that it believes that all Australians should have the opportunity and capacity to play a role in all aspects of Australian life. The Government further reports that the Social Inclusion Agenda works, among other goals, to afford every Australian the opportunity to secure a job. In order to progress the Social Inclusion Agenda, the Government has created several new departments, e.g. the Ministry for Social Inclusion in Australia; a Parliamentary Secretariat with specific responsibility for social inclusion; a Social Inclusion Unit located in the Department of the Prime Minister and Cabinet; and the Australian Social Inclusion Board. The Committee asks the Government to continue to provide information and evaluation data on the impact of the various labour market reform measures undertaken on the employment situation, and information on the involvement of the social partners in the design and implementation of an active employment policy in accordance with the Convention (Articles 1, 2 and 3 of the Convention).

Employment services. The Committee notes that since the previous report, the Government undertook a comprehensive review of the delivery of employment assistance programmes. The Government implemented Job Services Australia in July 2009, which replaced the Job Network, the Active Participation Model and a number of other smaller programmes. The Government reports that under Job Services Australia, jobseekers will no longer be moving in and out of different programmes, or from one provider to another. Every jobseeker will be linked to a provider of their choice, who will develop an individually tailored plan to assist the jobseeker in gaining employment. This plan will bring together the various types of assistance – vocational and non-vocational – needed to address the barriers faced by that individual. The Committee notes that the ACTU has welcomed the Government’s announced changes to the employment services to include a greater focus on disadvantaged jobseekers, employer servicing and local labour markets. The Committee asks the Government to supply information on the effects of the changes to employment services with regard to the objectives of the Convention.

Education and training policies. The Committee notes that under the Skilling Australia for the Future initiative, the Government has funded the Productivity Places Program which will deliver 711,000 training places over five years in areas of skills shortage to ensure that Australian workers develop the skills they need. The Government reports that these training places are being delivered in an industry-driven system, ensuring that training is more responsive to the needs of businesses and participants. Of the places, 392,000 training places will be allocated to existing workers wanting to gain or upgrade their skills, and 319,000 places will be allocated to jobseekers. The Government further reports that it has introduced the Jobs and Training Compact to support young Australians, retrenched workers and local communities get back to work, add to their skills, or learn the new skills required to obtain jobs as the labour market recovers. The Committee asks the Government to continue to provide information on the measures taken in the area of education and training policies and on their relation to prospective employment opportunities. The Committee also invites the Government to provide evaluation data on the Jobs and Training Compact.

Means to promote employment of workers with disabilities. The Committee notes that, as part of its Social Inclusion Agenda, the Government is developing a National Mental Health and Disability Employment Strategy to increase employment opportunities for people with disabilities, including mental illness. The Strategy will be released in 2009 and is being developed following consultations with people with disabilities, peak bodies, service providers, employers and unions. The Government reports that it has already started implementing some early and important elements of the Strategy, including developing the new disability employment services and an employment incentive pilot. In this regard, the Committee notes that the Government is investing 1.2 billion AUD in the new Disability Employment Services which will commence in March 2010, and will help jobseekers with disabilities to secure and maintain sustainable employment. Under these changes, all jobseekers with disabilities will have access to individually tailored employment services that are better suited to their needs, with stronger links to training and skills development. The Committee also notes the commitment in South Australia to double the number of people with disabilities employed in the public sector by 2014. The Committee invites the Government to continue to provide information on labour market measures regarding workers with disabilities and evaluation data on the Disability Employment Services.

Means to promote employment of older workers and younger workers. The Government indicates that despite a strong labour market over the past decade, there are still groups of people who experience labour market disadvantages. These groups will face further challenges in the context of the global economic recession – for example, young people who are out of work in a recession can find it particularly hard to recover once conditions improve. The Government indicates that it has agreed to establish a Compact with Young Australians which will entitle every Australian under the age of 25 to an education or training place. Through the Compact, a national “learning or earning” requirement (the National Youth Participation Requirement) will also ensure that all young people complete standard 10 and participate in education, training or employment until the age of 17. The Committee also notes the South Australia Works initiative which has developed a number of programmes aimed at providing young people aged 16–24 with skills and opportunities to move successfully from school, further education and training or unemployment, into stable, rewarding work. Concerning older workers, the Government reports that participation requirements for mature age jobseekers were examined by the Participation Review Taskforce. The Taskforce concluded that adult jobseekers should have the same participation requirements as other jobseekers but that any changes should be preceded by broader Government action to ameliorate negative attitudes towards adult workers. The Committee asks the Government to continue to provide information on the measures intended to encourage and support employment levels of older workers. It also asks the Government to include in its next report information on the way in which recently adopted measures have increased opportunities for lasting employment for young people entering working life.

Means to promote employment of indigenous peoples. In reply to the previous comments, the Government reports that it recognizes the particular disadvantage experienced by Aboriginal and Torres Strait Islander people in the labour market and that special measures are required to assist indigenous jobseekers into employment. Indigenous jobseekers are more heavily represented in regional and remote employment service areas than in metropolitan areas. The Government indicates that in June 2009, there were approximately 18,700 active registered indigenous jobseekers (4 per cent of total jobseekers) in metropolitan areas, whereas the numbers in regional areas was around 43,300 (13 per cent) and in remote areas 25,300 (80 per cent). Overall, indigenous jobseekers made up 11 per cent of that total Job Network active case load. The Government further reports that, in the 2008–09 fiscal year, Job Network members and other job placement organizations placed 38,000 indigenous jobseekers into work. Job Services Australia, which replaced Job Network on 1 July 2009, has an increased emphasis on assisting the most disadvantaged jobseekers, including many indigenous peoples. All Job Services Australia providers have a new requirement to develop and implement an indigenous employment strategy to increase the employment and retention of indigenous peoples within their organizations. Furthermore, the Committee notes the main findings in the 2009 Overcoming Indigenous Disadvantage Report, indicating that between 2001 and 2006 there were improvements in the indigenous unemployment rate, labour force participation rate and the employment to population ratio, although large gaps still remain between the indigenous and non-indigenous population. The Committee notes the comments formulated by the ACTU, which believes that sustainable, real employment is one of the corner stones in bridging the gap between Aboriginal and Torres Strait Islander people and the remainder of the population. The ACTU is concerned that aspects of the National Indigenous Employment Policy may be “more of the same” and suggests that historically these programmes produce few real employment outcomes with many participants finding themselves out of work once Government funding commitments have ceased. The ACTU believes employers, Government, unions and communities should work together to increase employment programmes and training producing long-term engagement in the workforce. The Committee invites the Government and the social partners to continue to provide information on the impact of the measures taken to promote productive employment opportunities for indigenous people.