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

Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

Previous direct request and previous observation

The Committee notes the observations of the Australian Council of Trade Unions (ACTU) received on 30 August 2021. The Committee requests the Government to provide its comments in this regard.

Education and training policies. The Committee notes the comprehensive information provided by the Government on policies and targeted programs implemented on the federal and territory-levels and the cooperation between state and territory training authorities, including on the key reforms of Australian Apprenticeships and on the Foundation Skills for Your Future program. For the latter, AUD50 million are allocated for the five-year period 1 July 2019 to 30 June 2024 to assist employed or recently unemployed Australians in developing language, literacy, numeracy and digital literacy skills through projects linked with employers. The Government states that as at December 2020, there were 297,920 apprentices or trainees in training, of whom 64.5 per cent were under the age of 25. In 2019, 87.7 per cent of graduates participating in an apprentice- or traineeship found employed after concluding these trainings. The Committee also notes the establishment, in 2020, of the National Skills Commissioner to provide expertise and national leadership on Australia’s labour market and current, emerging and future workforce skills needs, the skills reform underway since that year and the federal investment of AUD29.6 million to support the skills-led economic recovery from the COVID-19 pandemic, complemented by a Supporting Apprentices and Trainees wage subsidy amounting to AUD2.8 billion to ensure apprentices and trainees remained employed and able to complete their training and apprenticeships during the pandemic and enabled 90,000 small and medium-sized businesses to retain 180,000 apprentices and trainees. Finally, the Committee notes the Rapid Response Skills Initiative (RRSI) in Tasmania through which up to AUD3,000 are funnelled towards the cost of training for persons having lost casual, full-time or part-time work in the last 12 months due to retrenchment, downsizing or business closure and includes self-employed people. The Committee requests the Government to continue to provide information on the measures taken on the federal and territory levels in regard to education and training policies for all age groups, including apprenticeships, and on results achieved. The Committee would further appreciate receiving information as regards any measures aimed at coordinating education, training and retraining services, including higher education, apprenticeship, vocational training and entrepreneurship training, so as to enable those whose education and training have been interrupted to access education and training. The Committee observes that access to education and training, as well as to job counselling and placement services, are particularly crucial for young women and men who are already disadvantaged in the labour markets of most countries. In this context, youth employment policies and active labour market measures should be developed that, among other things, seek to ensure access to education, vocational training and skills development and to facilitate the transition from education and training to work. The Committee wishes to draw attention to the fact that, in a post pandemic context, there is an even stronger need for States, pursuant to Employment and Decent Work for Peace and Resilience Recommendation, 2017 (No. 205), to assess and meet emerging skills needs, and to formulate or adapt a national education, training, retraining and vocational guidance programme that assesses and responds to emerging skills needs for recovery, in consultation with education and training institutions and social partners.

Persons with disabilities. The Committee notes that based in July 2022, persons with disabilities had a lower labour force participation rate than people without, with 53 per cent (or 1.1 million) of working-age persons with disability being in the labour force, compared to 84 per cent (or 11.8 million) without. This rate is significantly lower for persons with severe or profound disabilities: 27 per cent (or 137,000). In reply to the Committee’s previous comment, the Government explains the adjustments to the improve the labour force participation rates of individuals with disability, the Government introduced a range of changes to the Disability Employment Services (DES) since 1 July 2018, which is available to people with disability as of 14 and is geared to securing long-term employment in the open labour market. The changes to the DES resulted in increased participant choice and control, a more competitive marketplace for DES providers, improved incentives for employment outcomes, and indexation of provider payments. The Committee also notes Australia’s Disability Strategy 2021-2031, which builds on holistic Government actions, and rests on a whole-of-community response, inclusive of business, the non-government and services sectors and individuals. The Committee notes the Government’s updated information on the actors on the federal and territory levels and on targeted programs, such as the Employment Assistance Fund and the National Disability Insurance Scheme, which is aimed at enabling improved social and economic participation of people with disability and from which 450,000 persons had benefitted on 31 March 2022. Furthermore, and aimed at reducing long-term unemployment, the New Employment Services Model and the Transition to Work programme under Jobactive include special measures for – young – persons with disabilities, including wage subsidies for employers hiring persons with disabilities, who participate in TtW. As at 30 June 2021, there were 4,018 youth with disability in TtW, 10.8 per cent of the case, and 3,754 job placements could be implemented for participants with an identified disability (4.9 per cent of all placements under the programme). Observing that employment policies are one of the most appropriate means to include adequate measures to integrate persons with disabilities in the labour market, the Committee requests the Government to continue to provide information on measures taken at policy and technical levels in this respect as well as to inform with regard to their impact and generally on results achieved as part of their implementation and on the sustainable integration of persons with disabilities into the open labour market.

Older workers. The Committee notes that in February 2020, the labour force participation rate for persons aged 55 years and over was 36.7 per cent with a participation rate of 14.4 per cent for persons aged 65 and over. Of these older workers, 3 in 5 (61 per cent) were men and 2 in 5 were women (39 per cent). The Government indicates 30 June 2021, 274,887 persons with 50 years of age formed part of Jobactive (28.4 per cent of all cases) and that between July 2015 and June 2021, 342,846 job placements (equating to 16.9 per cent of all placements) took place. The Committee notes the Government’s information on the continuation of existing programmes, such as the Restart Wage Subsidy, which provides wage subsidies of up to AUD10,000 for jobseekers 50 years of age or older after six months on income support, and the Career Transition Assistance program (CTA), of whose 10,258 participants, 2,286 received job placements as at 30 June 2021. The Committee notes that as part of the More Choices for a Longer Life Package, mature age-focused Entrepreneurship Facilitators assisted 17,785 older workers to start small businesses. The Committee requests the Government to continue to provide information on the impact of the programmes and other measures to encourage and support employment levels of older workers.

Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

Previous comments: observation and direct request

The Committee notes the observations of the Australian Council of Trade Unions (ACTU) received on 30 August 2021. The Committee requests the Government to provide its comments in this regard.

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes that in October 2022, the seasonally adjusted total labour force participation rate stood at 66.6 per cent, the unemployment rate at 3.5 per cent (3.5 per cent for men and 3.4 per cent for women) and the underemployment rate at 6 per cent, down from 8.5 per cent in July 2017 and 7.9 per cent in 2021. In regard to long-term unemployment, the Government indicates that on 30 June 2021, there were 742,456 who were long-term unemployed persons on the Jobactive program, that is, namely persons registered with Employment Services for 12 months or longer. It further states that between 1 July 2017 to 30 June 2021, 738,237 long-term unemployed were placed in jobs. The Committee notes that, as of July 2022, the New Employment Services Model, equipped with a funding of AUD5.9 billion, replaced Jobactive as main employment service programme. With its increased investment for disadvantaged workers, the Model is comprised of a personalized digital platform containing a range of tools, including online learning and job matching for the different needs of jobseekers - with job seekers needing extra support receiving intensive case management through an employment services provider. The Government states that the Australian labour market is diverse and flexible and provides various forms of working arrangements to meet a variety of needs from businesses and workers as well as greater opportunities for work to facilitate trends such as greater participation of women in the labour market, increase in the number of persons in education and supporting older workers transitioning into retirement. It states that in June 2021, the part-time share of employment stood at 31.5 per cent of whom 51.6 per cent are casual, that is, employees without either paid sick or holiday leave entitlement. In May 2021, 23.7 per cent of all employees were casual employees, which is equal to 2.6 million people. In August 2020, 4 per cent of all employees were on fixed-term contracts, 18.3 per cent of which without leave entitlements. In August 2020, around 1 million workers, or 8.2 per cent of the workforce, were independent contractors operating their own business, contracting to perform services for others.

In its observations received on 30 August 2021, the Australian Council of Trade Unions (ACTU) considers insecure work as one of the most pressing issues faced by workers in Australia and that the country had one of the highest rates of non-standard work arrangements in the Organisation for Economic Cooperation and Development (OECD), with nearly 24 per cent of all employees working on a casual basis. The ACTU recognizes that while some of these forms of employment had a legitimate purpose, they are increasingly used by employers so as to avoid the responsibilities associated with a permanent ongoing employment relationship, with the existing legal framework fostering the use of various types of employment to shift the employment risks and costs to the worker. It concludes that there were currently no pathways for workers in insecure work to access more secure, better-quality jobs.

The Committee recalls that active policies designed to promote full, productive and freely chosen employment also need to be attentive to the extent to which economic growth translates into decent work creation in the economy. They also participate to better labour market outcomes and to poverty reduction. In this context, the Committee hopes that in its next report the Government will respond to the concerns raised by the ACTU by indicating how the issues raised related, inter alia, to long-term unemployment, underemployment and insecure work, have been discussed in policymaking and implementation fora in view of the employment promotion objective of the Convention that plays a critical role in combating poverty and social exclusion.

Youth employment. The Committee notes the Government’s statement that despite improvements, for example in regard to the unemployment rate which fell from 12.8 per cent in July 2017 to 10.2 per cent in June 2021 and a decrease of the underemployment rate by 1.4 percentage points over the period to 16.2 per cent, young people continue to face disadvantages in the labour market. The youth unemployment and underemployment rates for men and women decreased during this time frame. For men, the unemployment rate has decreased by 1.5 percentage points reaching 12.1 per cent. For women, it has decreased by 3.9 percentage points and stands at 8 per cent. As regards the youth underemployment rate, it decreased by 0.1 percentage points for men resulting in 15.4 per cent underemployment in June 2021, whereas for women it decreased by 2.7 percentage points to reach 17.1 per cent. During the same time, the number of jobseekers under 25 years of age participating in Jobactive amounted to a total of 319,660 (177,630 men and 142,030 women). In addition, the Committee notes that during the same period, the Transition to Work (TtW) service, which provides intensive, pre-employment assistance to improve the work readiness of young people who have disengaged from work and study, resulted in 64,932 job placements (36,604 men and 28,328 women) and 135,848 activity placements (72,907 men and 62,941 women). The ParentsNext programme, which prepares young parents under the age of 25 years for employment has registered a total of 73,827 participants (1,458 men and 72,369 women). In addition, 37,742 men and 24,312 women were placed under the Youth Bonus Wage Subsidy, which provides up to AUD10,000 to employers over a six-month period to hire eligible young job seekers between 15–24 years of age. The Committee notes that further to targeted programmes at the territory level such as in Western Australia, as of 31 May 2021, 85,634 young people participated in the JobTrainer Fund established through a cooperation between the federal and territory levels to provide free or low fee training for job seekers and young people, including school leavers, to upskill or reskill in areas of identified skills needs. It also notes the National Work Experience Program (NWEP), which gives job seekers an opportunity to participate in real-life unpaid work experience, gain confidence and demonstrate their skills to potential employers (304 men and 226 women under the age of 25 accessed the programme). The Committee notes the Job Ready Fund in Tasmania, which is aimed at removing barriers to employment for young first-time jobseekers through up to AUD500 for the purchase of essential equipment, such as White Card accreditation, work boots, protective clothing or tools. Furthermore, the federal Government also continued implementing the Youth Jobs PaTH (Prepare, Trial, Hire) programme, providing (employability skills) training to 73,488 men and 48,812 women and work experience placement through internships and wage subsidies to 7,432 men and 6,609 women. Reiterating its previous concerns, the ACTU remains adamant that the PaTH was not effective in moving young people into work as it would result in displacing wage-paying jobs, fell short of the aim to achieve meaningful qualifications and excluded participants from the protection of OSH legislation. While duly noting the measures taken to promote youth employment prospects, the Committee notes the important concerns put forward by the ACTU on the effects of measures taken on not only the quantity but also the quality of youth employment and asks the Government to respond to these observations in its next report.

Women. The Committee notes that most of the targeted programmes on the federal and territory levels, such as Jobactive and TtW have a women’s component. During the implementation period of Jobactive and TtW and up until 30 June 2021, 847,949 (41.7 per cent of all), respectively 32,920 (43 per cent of all) women could be placed in jobs. The Child Care Subsidy forms the center piece of the Child Care Package targeting financial assistance to low-and middle-income families to help cover the cost of childcare, thereby encouraging workforce participation of women. Furthermore, the wage subsidies paid under Jobactive, which are being increased from AUD6,500 to AUD10,000 to incentivize employers to hire, train and retain disadvantaged job seekers benefited 100,608 women until June 2021. The Government further reports in regard to Victoria that the Gender Equality Act will improve gender equality across Government and public sector organizations and complement the work of the Victoria Equal Workplaces Advisory Council to guide and advocate to the Victorian Government and to Victorian industry and employers, practical and tangible ways to achieve gender pay equity in Victorian workplaces. The ACTU observes that women were over-represented among workers in insecure and low-paid jobs and were shouldering the majority of unpaid domestic and care labour before the Covid-19-pandemic, following which 21 per cent of the female workforce (1.3 million) lost their work or is experiencing pressures on their capacity to retain paid work. It further brings forward that before the pandemic, only 43 per cent of employed Australian women worked in a full-time permanent job with entitlements such as paid sick leave. Inadequate support for working parents and a lack of affordable quality early childhood education and care and adequate paid parental leave meant that many women rather held part-time jobs. The ACTU concludes that Aboriginal and Torres Strait Islander women and migrant workers face a double burden of discrimination and inequity, with less access to secure work and fair pay because of both their race and their gender. The Committee notes the recognition of the importance to coordinate employment and social protection policies, notably in order to contribute to the promotion of gender-sensitive outcomes.The Committee notes that the Government has not responded to the observations brought forward by the ACTU and hopes that in its next report the Government will provide information on the concerns raised regarding the over-representation of women in insecure and low-paid jobs. The Government is asked to continue providing information on policy and technical measures aimed at increasing both the employment quality and levels of women at the national level.

Indigenous peoples. The Committee notes that in 2018–19, the employment rate of indigenous peoples in remote and non-remote areas of the country was 36 per cent and 52 per cent, respectively, being highest in the Australian Capital Territory (61 per cent), followed by Tasmania (54 per cent) and New South Wales (54 per cent), and lowest in the Northern Territory (37 per cent) with men reporting a higher overall employment rate (54 per cent) than women (45 per cent) – these rates have remained stable since 2008. The Committee notes the Government’s updated information on the implementation of targeted programmes on the federal and territory levels, such as Jobactive and TtW, with a particular focus on the needs of indigenous populations. The Committee notes that in 2020, all Australian governments and the Coalition of Aboriginal and Torres Strait Islander Peak Organizations adopted the National Agreement on Closing the Gap committing to achieve by 2031 four key reform priorities and 16 socioeconomic closing the gap targets, including to increase the proportion of Aboriginal and Torres Strait Islander youth (15–24 years) in employment, education or training to 67 per cent; and of people aged 25–64 who are employed, to 62 per cent. Finally, the Government refers to the Community Development Programmes (CDP) offered by 46 CDP providers contracted by the Australian Government to deliver a range of employment services to remote job seekers, 83 per cent of which identified as Indigenous Australians, across 60 CDP regions. During the period 1 July 2015 to 31 July 2021, the programme resulted in placing 48,608 persons, of which 14,926 have resulted in the job seeker staying in the job for at least 26 weeks. The ACTU criticizes that CDP workers were not classified as workers, receiving well below the minimum wage and are not covered by the Fair Work Act, are deprived of OSH protections, worker compensation and annual, sick or carer’s or cultural (“Sorry Business”) leave. Furthermore, while the accrual of welfare entitlements is disadvantageous and penalties for infringements are prohibitive, the programme had failed to produce significant employment outcomes and was deemed to be replaced. The Committee requests the Government to respond to the ACTU’s observations regarding the low quality of the CDP jobs, indicating also whether the 2031 objectives are on track and informing about any new initiatives taken to increase sustainable employment opportunities for indigenous peoples in all regions of the country but particularly in the regions where vulnerabilities among the indigenous people are the highest. In addition, the Committee refers to its direct request in which it addresses further categories of workers vulnerable to decent work deficits and exclusion.

Article 3. Participation of the social partners in the formulation and implementation of employment policies. The Government states that all the specific targeted programmes on the federal and territory levels included consultations of the respective stakeholders with the New Employment Services Model. Consultations take place within an Expert Advisory Panel comprised of employer, provider, and welfare group representatives, as well as a labour market economist and an expert in business transformation. Its adoption was preceded by extensive consultations held across Australia with more than 1,400 employers, providers, job seekers, community organizations, unions, think tanks/academia, industry and state and local governments. The ACTU contends that the Government failed to consult it, as the representative of workers, concerning employment policies. While it takes due note of the information provided by the Government as regards consultative processes with the respective stakeholders related to specific targeted measures at the federal and territory levels, the Committee wishes to stress that, pursuant to Article 3 of the Convention, the representatives of employers and workers, need to be consulted concerning the design and implementation of employment policies, with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies. At the same time, it recalls that having built-in comprehensive, participative and transparent monitoring and evaluation mechanisms into the national employment policy enables all the parties concerned to identify achievements and challenges in meeting the established policy objectives. The Committee therefore requests the Government to provide further information as regards the manner in which the Government associates the social partners to crafting, implementing and monitoring the employment policies at the federal and territory levels.

The Committee is raising other matters in a request addressed directly to the Government.

Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

The Committee notes the observations of the Australian Council of Trade Unions (ACTU) received on 4 October 2017. The Committee requests the Government to provide its comments in this regard.

Employment services. The Committee notes three main employment service programmes. The Government indicates the commencement of the Jobactive programme and the Community Development Programme (CDP) on 1 July 2015. Jobactive replaced Job Services Australia and aims to better meet the needs of jobseekers, employers and providers through stronger workforce participation. In March 2017, Jobactive had 746,757 participants. The CDP replaced the Remote Jobs and Community Programme and aims to provide assistance to remote jobseekers by focusing on local decision-making and solutions. The Committee notes that from July 2018 the Government aims to introduce changes to the Disability Employment Services (DES) which continue to provide specialized employment services for persons with disabilities. The Committee refers to its direct request on the application of the Employment Service Convention, 1948 (No. 88), where it notes in detail the employment service policy of the Government. The Committee requests the Government to provide information on the effects of the changes to employment services with regard to the objectives of the Convention.

Education and training policies. The Government indicates that it provides significant financial support for vocational education and training. In this respect, it has committed US$1.75 billion over five years from 2012 to drive reform of the training system through the National Partnership Agreement on Skills Reform and it commits to payments of US$1.4 billion per year associated with the National Agreement for Skills and Workforce Development. The Committee notes that the Australian Apprenticeships Support Services are an important part of the Australian vocational education and training system. As at December 2016, there were 265,000 apprentices or trainees in training, of whom 65.1 per cent were under the age of 25. In 2015, 82.2 per cent of graduates who undertook their training as part of an apprenticeship or traineeship were employed after training. The Committee also notes that the Queensland Government’s annual Vocational Education and Training Investment Plan provides funding for several programmes supporting training such as the Skilling Queenslanders for Work initiative, and the Certificate 3 Guarantee, Higher Level Skills and User Choice Programmes. Furthermore, the South Australian Government’s WorkReady policy offers subsidized vocational education and skills development opportunities across a broad range of qualifications. The Committee requests the Government to continue to provide information on the measures taken in the area of education and training policies, including apprenticeships, and on their relation to prospective employment opportunities.

Persons with disabilities. The labour force participation rate for persons with disabilities has remained stagnant for the past 20 years, estimated at 53 per cent. The Committee notes that all three employment services programmes aim at assisting persons with disabilities into employment. In March 2017, 26 per cent of Jobactive participants were persons with disabilities. Starting in 2010, the DES has achieved around 360,000 job placements and about 220,000 employment outcomes lasting at least six months. To improve the labour force participation rates of individuals with disabilities, the Government will introduce the new DES on 1 July 2018, following extensive sector consultations in 2015 and 2016. The Committee notes the establishment of the Disability Employment Taskforce which is mandated to develop a new National Disability Employment Framework. The Committee also notes the introduction of a National Disability Insurance Scheme (NDIS) which, in close coordination with the DES, is expected to contribute to increasing the workforce participation of persons with disabilities. In addition, a number of other programmes and services exist to engage employers to employ more persons with disabilities, such as the National Disability Recruitment Coordinator, the Australian JobAccess and the Australian Disability Enterprises. The Employment Assistance Fund encourages and supports the employment of eligible persons with disabilities by providing financial assistance to purchase a range of work-related services. The Committee requests the Government to continue to provide information on labour market measures regarding workers with disabilities and evaluation data on the DES. The Committee would welcome examining in the Government’s next report on the application of the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159), information on the impact of the measures regarding persons with disabilities in the open labour market.

Older workers and women. Although the unemployment rate for older workers, at 3.4 per cent, is much lower than other age cohorts, older people continue to experience great difficulty in finding subsequent employment and are more likely to become long-term unemployed when compared with their younger cohorts. The Committee notes that the Government introduced additional assistance for mature age jobseekers in the 2017–18 budget through enhancements to existing programmes and the introduction of new programmes, such as the Career Transition Assistance Programme, several Pathway to Work pilots and the expansion of the National Work Experience Programme. The Australian Government provides increased support for training, work experience opportunities and linkages to employers and it is encouraging businesses to recognize the benefits that mature age people bring to the workforce. Since the Restart Programme commenced on 1 July 2014, there were over 14,500 job placements with a Restart wage subsidy as at June 2017. Furthermore, over 40.2 per cent of mature age jobseekers who participated in the first year of Jobactive were in employment three months later. The Committee notes that the Queensland Government has a number of programmes to support employment levels of older workers, including the Back to Work Regional Employment Package, Skilling Queenslanders for Work and Community Learning. The South Australian Government assists mature age workers and jobseekers through the delivery of training opportunities, skills and employment initiatives. The Committee notes that the female unemployment rate has fallen from 6 per cent in May 2014, to 5.6 per cent in May 2017. Support to female jobseekers is provided through Jobactive, complemented by the ParentsNext programme and Launch into Work. Jobactive has achieved 276,690 job placements for female jobseekers since its commencement. The Committee requests the Government to provide information on the impact of the measures taken to encourage and support employment levels of older workers and women.

Indigenous peoples. Indigenous Australians experience low labour force participation and employment rate, and high unemployment rates, compared to the rest of the Australian population. Between 2008 and 2014–15, the indigenous employment gap widened with the indigenous employment rate falling from 53.8 per cent to 48.4 per cent and the non-indigenous employment rate falling from 75 per cent in 2008 to 72.6 per cent. The Committee notes that indigenous jobseekers are more heavily represented in regional and remote employment service areas than in metropolitan areas. Remote locations feature weaker labour markets with fewer employment opportunities. In 2014–15, under half of Aboriginal and Torres Strait Islander people in very remote areas were participating in the labour force, compared with 67.1 per cent of indigenous people in the major cities. In the 2017–18 budget, the Government announced a US$55.7 million new investment to accelerate progress towards achieving parity in employment outcomes between indigenous and non-indigenous Australians, as part of the Closing the Gap – Employment Services package. The Closing the Gap – Employment Services package will provide, inter alia, access to intensive servicing through the Transition to Work programme for all indigenous youth who are not in work or study and immediate access to wage subsidies for indigenous jobseekers. The Government refers to the Prison to Work Employment Service which provides pre-employment assistance to indigenous prisoners, and to a number of new programmes which aim to help young indigenous jobseekers such as the YOUth initiatives, Youth Jobs PaTH, Encouraging Entrepreneurship and Self-Employment and the New Enterprise Incentive Scheme (NEIS). ParentsNext aims to increase labour force participation among indigenous parents. Jobactive aims, inter alia, at increasing indigenous employment outcomes and, in its first 21 months, achieved around 53,800 job placements for indigenous jobseekers. Furthermore, the Committee notes the Youth Employment Program of the Queensland Government which during 2015–16 facilitated 1,021 jobs for Aboriginal and Torres Strait Islander jobseekers across Queensland, and the Training Together – Working Together Aboriginal workforce development strategy of Western Australia. The Committee requests the Government to provide information on the impact of the measures taken to increase employment opportunities for indigenous Australians. The Committee also requests the Government to include information on the review of the employment and training initiatives in this regard.

Article 3. Participation of the social partners in the formulation and implementation of policies. The Government indicates that the Department of Employment has conducted extensive consultations on the implementation of the Jobactive programme. The Government further indicates that it has special consultation arrangements in place relating to issues affecting persons with disabilities and jobseekers in remote areas and refers to the ongoing consultation on the CDP. Furthermore, the Disability Employment Taskforce led two rounds of public consultation in 2015, the feedback from which will be used for the development of a new National Disability Employment Framework. Furthermore, the Committee notes the establishment of the Queensland Industrial Relations Consultative Committee which discusses changes to industrial relations issues, and the establishment of the Training and Skills Commission of the South Australian Government which consults with employers’, employees’ and community organizations. The Committee requests the Government to continue providing information on the manner in which the views of employers, workers and other affected groups are taken sufficiently into account in the development, implementation and review of employment policies and programmes.

Observation (CEACR) - adopted 2017, published 107th ILC session (2018)

The Committee notes the observations of the Australian Council of Trade Unions (ACTU) received on 4 October 2017. The Government is requested to provide its comments in this regard.

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Government indicates that labour market conditions have improved over the past three years to May 2017. The number of persons in employment increased to 12,152,600 in May 2017 and the unemployment rate declined from 5.9 per cent in May 2014 to 5.5 per cent in May 2017. Although the participation rate increased to 64.9 per cent over the reporting period, up to May 2017, groups in situations of vulnerability, including the long-term unemployed, youth, the mature aged, persons with disabilities and indigenous Australians, continue to be disadvantaged in the labour market. The Committee notes that the Government is committed to promote workforce participation and to provide additional support to specific groups, with a particular focus on disadvantaged parents of young children, indigenous Australians and older people. The Committee notes that the range of targeted assistance has increased since the last report, with the introduction of the Transition to Work and ParentsNext. ParentsNext, which became operational in April 2016, is a pre employment programme assisting parents belonging to specific groups in preparing for employment, including indigenous Australians, women, youth and culturally and linguistically diverse Australians. The Committee also notes a structural change in the employment market over the past 25 years. Given that the share of employment in the services industries has risen, the Government is seeking to reskill retrenched workers to take up opportunities in industries that are experiencing growth through, for example, the Growth Fund initiative. The Committee also notes a rise in part-time employment over the past three years, which coincides with increased underemployment. In its observations, the ACTU indicates that underemployment is at a record high and reiterates that precarious work is one of the most pressing issues in the labour context, with 40 per cent of all workers working under non-standard work arrangements. While the ACTU recognizes that these forms of employment have their legitimate purposes, it maintains that these arrangements are increasingly being used to avoid the responsibilities associated with a permanent ongoing employment relationship. The ACTU refers to its 2012 Independent Inquiry into Insecure Work which includes recommendations directed at improving the level of permanent employment among the Australian workforce. The Committee requests the Government to specify how it keeps under review, coordinates and adapts the measures and policies adopted according to the results achieved in pursuit of the objectives of full, productive and freely chosen employment. The Committee also requests the Government to include information on the results of the measures taken to address long-term unemployment, underemployment and precarious work, including information on the number of programme beneficiaries obtaining lasting employment.

Youth employment. The Committee notes that youth unemployment fell from 13.6 per cent in 2014 to 12.7 per cent in 2017 and that youth employment increased by 3.6 per cent over the three years prior to May 2017. However, the Committee notes that young people continue to experience disadvantage in the labour market and that the underemployment rate for young persons has increased from 15.8 per cent in May 2014 to 18.5 per cent in May 2017. The ACTU observes that the youth underemployment rate is approximately three times that of the rest of the workforce. The Committee takes note of a series of measures, enacted in the context of the Youth Employment Strategy since 2015, to assist young people at risk of long-term unemployment and welfare reliance. The Government indicates that the Empowering YOUth Initiatives support innovative approaches from not-for-profit and non-governmental organizations to help unemployed young people, while the Transition to Work service provides intensive, pre-employment assistance to improve the work readiness of young people who have disengaged from work and study. Furthermore, ParentsNext assists, inter alia, young parents to prepare for employment. Among these projects, the Committee notes with interest the initiatives taken under the Government’s Youth Employment Strategy, targeting the improvement of employment outcomes for young people with mental illness. The Committee notes that Youth Jobs PaTH provides training and voluntary work experience placement through PaTH internships and wage subsidies. It also notes, however, that the ACTU expresses concern that PaTH internships replace real, entry-level jobs and carry with them a risk of exploitation for vulnerable young jobseekers, indicating that participants are not given the legal protections to which employees are typically entitled, since they are paid significantly below the minimum wage, are not provided meaningful qualifications and are not granted legal protections to which employees are typically entitled. The Encouraging Entrepreneurship and Self-Employment initiative aims to expand government services for young unemployed who wish to start their own business and includes an expansion of the New Enterprise Incentive Scheme. The Government is also funding Community Development Programme (CDP) providers to implement youth engagement strategies to help engage young people in remote Australia. The Growing Jobs and Small Business Package is aimed at providing targeted support for young people who are more susceptible to long-term unemployment. The Queensland Government has implemented a number of programmes to reduce youth unemployment, including the Back to Work Regional Employment Package and Skilling Queenslanders for Work programme, the Back to Work South East Queensland Employment Package and the Employment Skills Development Program. With regard to Western Australia, the annual Western Australia State Training Plans focus on youth training aimed at connecting young people’s competencies with industry needs. The Committee requests the Government to provide detailed information, including statistical data disaggregated by sex and age, on the impact of the measures taken to encourage and support employment levels of young people and reduce youth unemployment. The Committee requests the Government to provide detailed information, including statistical data disaggregated by sex and age, on the numbers of young persons participating in each of the abovementioned programmes, and on the impact of each of these programmes on the employment rate among young persons.

Direct Request (CEACR) - adopted 2014, published 104th ILC session (2015)

Employment services. The Government recalls in its report that it provides employment support through Job Services Australia (JSA) to help people into new jobs after redundancy. Since commencement through to 31 March 2014, JSA has recorded over 1.87 million job placements. In reply to the previous comments, the Government states that JSA, together with the Disability Employment Services (DES), is therefore still achieving and ensuring vulnerable jobseekers have access to the labour market, thereby more accurately implementing a policy of full and productive employment in Australia. The Government adds that the current JSA contracts are due to expire on 30 June 2015, which will provide an opportunity to address any shortcomings identified in the current model. The Committee invites the Government to provide information on the changes that will be made to the activities of the employment services following the expiry of the current JSA contracts.

Education and training policies. The Committee notes that a revised National Agreement for Skills and Workforce Development (NASWD) and a new National Partnership Agreement on Skills Reform was agreed upon by the authorities in April 2012. The NASWD aims to deliver a productive and highly skilled workforce that enables all working age Australians to develop the skills and qualifications needed to participate effectively in the labour market and contribute to Australia’s economic future. The Government indicates that it provides significant financial support to state and territory training systems. It adds that apprenticeships are an important part of the Australian vocational education and training system. As at December 2013, there were 392,200 apprentices or trainees in training, of whom 53 per cent were under the age of 25. In 2013, 83.4 per cent of graduates who undertook their training as part of an apprenticeship were employed after training. The Committee invites the Government to continue to provide information on the measures taken in the area of education and training policies, including apprenticeships, and on their relation to prospective employment opportunities.

Persons with disabilities. The Government indicates that, in 2012, there were an estimated 2,204,000 persons aged 15–64 in Australia with some level of disability. The unemployment rate for persons with disabilities stood at 9.4 per cent in 2012. The Government indicates that it is investing more than $3.8 billion in the Disability Employment Services (DES) programme over the next four years to help persons with disabilities to find and maintain work in the open labour market. A key focus of DES providers is engaging with employers to enhance the availability of jobs for persons with disabilities and to improve the employer’s confidence in employing them. In addition to the support provided by DES, a number of other programmes and services exist, such as the National Disability Recruitment Coordinator (NDRC) which works at the national level to increase the employment participation of persons with disabilities through direct support to large employers that employ more than 100 people. The Committee would welcome examining in the Government’s report on the application of the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159), due in 2015, information on the impact of the measures regarding persons with disabilities in the open labour market.

Older workers. Despite recording a much lower rate of unemployment than other age cohorts, older people continue to encounter much greater difficulty finding subsequent employment, when compared to their younger cohorts (with an average duration of unemployment of 67 weeks, compared with 44 weeks for persons aged 25–54). The Government indicates that mature age workforce participation remains a priority. The restart programme, announced in the May 2014 Budget, is aimed at encouraging employers to recruit mature age jobseekers, and will provide eligible employers up to $10,000 (GST inclusive) if they hire a mature age jobseeker 50 years and over who has been unemployed and on income support for six months or more. The Committee invites the Government to provide information on the impact of the measures taken to encourage and support employment levels of older workers.

Indigenous peoples. The Committee notes that the labour force participation rate of indigenous Australians (15–64 years) fell from 64.5 per cent in 2008 to 60.9 per cent in 2012–13, and the unemployment rate rose from 16.6 per cent to 21.6 per cent. In 2012–13, labour force participation rates were lower for indigenous Australians (60.9 per cent) compared with non-Indigenous Australians (79.6 per cent); and unemployment rates were higher for Indigenous Australians (21.6 per cent) compared with non-Indigenous Australians (5.1 per cent) for the same year. The Government indicates that these unacceptable outcomes have prompted the Government to review its approach to promoting employment for indigenous peoples. In reply to the previous observations of the ACTU, the Government indicates that it recognises that record spending levels on indigenous Australian employment initiatives has not achieved the desired outcomes. The Government recognises the importance of identifying sustainable job opportunities and increasing participation and economic development for indigenous Australians in order to meet the Indigenous employment targets. The Government indicates that on 18 September 2013 indigenous specific policy and programmes was transferred to the Department of the Prime Minister and Cabinet. In October 2013, the Prime Minister appointed launched an independent review of Indigenous Employment and Training Programmes. Moreover, the Committee notes that, since its commencement on 1 July 2009 through 31 March 2014, the JSA has achieved more than 183,000 job placements for indigenous jobseekers. The Committee invites the Government to provide information on the impact of the measures taken to increase employment opportunities for indigenous Australians. Please also include information on the review of the employment and training initiatives in this regard.

Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

Effective employment policy measures. The Committee notes the detailed information provided by the Government and the observations of the Australian Council of Trade Unions (ACTU) received in September 2014. The Government indicates that, against the backdrop of a relatively subdued international environment and a below trend domestic economic growth, labour market conditions in Australia have been soft over the three years from June 2011 to June 2014. Following a general election in September 2013, the new Government has committed to improving productivity by boosting workforce participation. The Committee notes that employment growth increased by 365,400 persons over the three years to 11,576,900 in June 2014, an annual average rate of 1.1 per cent, which is well below the long-term trend rate of 2.0 per cent. In addition, the level of unemployment in Australia increased by 163,000 persons over the period to stand at 745,200. The unemployment rate increased from 4.9 per cent in June 2011 to 6.0 per cent in June 2014. The Government states that the level of long-term unemployment (persons who have been unemployed for 52 weeks or longer) increased significantly in recent years, up by 60,500 between June 2011 and June 2014 to stand at 172,400, its highest level since November 1999. Measures were included in Job Services Australia (JSA) 2012–15 to assist the very unemployed find employment. In addition, the Government’s 2014–15 Budget initiatives are specifically designed to address Australia’s unemployment, and those groups particularly impacted. In its observations, the ACTU has identified precarious work as one of the most pressing issues facing workers in Australia today. The ACTU states that 40 per cent of all workers in Australia work under non-standard work arrangements, such as casual, fixed term, contracting and labour hire arrangements. A remarkable 25 per cent of all employees work on a casual basis. While the ACTU recognizes that these forms of employment have their legitimate and genuine purposes, they are increasingly used, and abused, so as to avoid the responsibilities associated with a permanent ongoing employment relationship. The ACTU believes that the obligation to pursue, as a major goal, an active policy to promote full, productive and freely chosen employment in accordance with Article 1 of the Convention requires the Government to take positive steps to address the issue of precarious work. Keeping in mind the concerns raised by the ACTU, the Committee requests the Government to specify how, pursuant to Article 2 of the Convention, it keeps under review the measures and policies adopted according to the results achieved in pursuit of the objectives of full, productive and freely chosen employment, specified in Article 1. The Committee also invites the Government to include information on the results of the measures adopted in order to address long-term unemployment and, underemployment, including information on the number of programme beneficiaries obtaining lasting employment.

Youth employment. The Committee notes that the youth (persons aged 15–24 years) labour market conditions have deteriorated over the three years to June 2014, with employment falling by 37,400 (or 2.0 per cent), while the unemployment rate for this cohort has increased from 11.2 per cent in June 2011 to 13.6 per cent in June 2014. As part of the Budget 2014–15, from 1 January 2015 young people aged under 30 years who have a full capacity to work will be required to either learn or earn, through tighter eligibility criteria for newstart and youth allowance. The Green Army programme will also provide environmental based work experience opportunities for up to 15,000 young people aged 17–24. Young jobseekers can join Green Army as an alternative to Work for the Dole. The Committee notes the observations of the ACTU indicating that the Green Army programme and the Work for the Dole programme suffer many of the same flaws. There is no guarantee of ongoing work for participants and no obligation to use commonwealth funding to assist disadvantaged jobseekers to find employment. There is also no requirement for job service providers to provide participants with structured on-the-job training, mentoring or information about other employment services. Keeping in mind the concerns raised by the ACTU, the Committee requests the Government to provide detailed information on the impact of the measures in Budget 2014–15 taken to encourage and support employment levels of young people and reduce youth unemployment.

The Committee is raising other matters in a request addressed directly to the Government.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Employment trends and active labour market measures. The Committee notes the Government’s comprehensive report received in September 2011 which includes detailed replies to the matters raised in the 2009 observation. The Government reports that Australia has emerged from the global financial crisis with a relatively strong labour market. There are however, many regions still with unemployment levels well above the national average, and the growing number of very long-term unemployed is another cause for concern. Natural disasters in 2010–11 have also negatively affected regional labour markets. The Committee notes the data provided by the Government showing that the Australian labour market remains resilient, despite some short-term softness in activity. Employment increased by 222,000 (or 2 per cent) throughout the year until June 2011, to stand at 11,455,200, although the pace of employment growth has slowed in recent quarters, peaking at 36,000 in August 2010, to its modest pace of 3,800 in June 2011. Nevertheless, the unemployment rate has fallen to 4.9 per cent in June 2011 and the participation rate increased by 0.2 percentage points, reaching 65.6 per cent in June 2011. The Government indicates that the Keep Australia Working initiative was implemented in response to the effects of the global financial crisis to protect jobs and support business. This programme included several initiatives aimed at maximising employment including Local Employment Coordinators working directly with employers to increase opportunities for jobseekers in the regions. Due to the success of this locally based programme, it was granted a two-year extension in the 2011 budget. The Committee invites the Government to continue to provide 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 1–3 of the Convention).

Employment services. The Committee notes that the Employment Partnership Framework was established in 2010 to facilitate consultation with key employment services stakeholders. The framework includes mechanisms for consultation at strategic and operational levels. The Government indicates that the current employment service contracts (both Job Services Australia and Disability Employment Services) expire on 30 June 2012. The development and implementation of the new model has been underpinned by an extensive consultation process with stakeholders. Following consultations and feedback indicating that there was a strong desire for stability, the Government announced that apart from some minimal changes the Job Services Australia and Disability Employment Services models will remain largely unchanged when the new contracts are introduced in July 2012. The Committee invites the Government to continue to provide 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 the Jobs Fund initiative supports and creates jobs and skills development through projects that build community and social infrastructure. The Jobs Fund is part of the Jobs and Training Compact which was announced in April 2009 to support families and communities most affected by the global financial crisis. As of June 2011, the Jobs Fund projects created 8,500 jobs, 2,260 traineeships/apprenticeships and 4,400 work experience places. The Government indicates that it is currently completing fieldwork for the evaluation of the Jobs and Training Compact and the final report is expected to be released in the near future. It further indicates that it commenced several regionally focused initiatives in 2011 such as the Regional Education, Skills and Jobs Plans initiative with the aim to increase productivity and social inclusion outcomes. The Productivity Places Programme, which started in 2008, will provide training places for over five years to ensure both jobseekers and existing workers develop the skills to meet industry needs. Furthermore, the Securing Australian Apprenticeships measure seeks to support apprenticeship programmes in the labour market, assisting almost 50,000 employers as of May 2011. The Committee invites 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.

Means to promote employment of workers with disabilities. The Government indicates that under the Disability Employment Services which commenced in March 2010, eligible jobseekers with disabilities have immediate access to tailored services that are flexible and responsive to both their needs and those of employers. The Evaluation of the Disability Employment Services Interim Report was released in June 2011 assessing the early months of the 2010–12 programme. When compared to previous programmes, the evaluation found that: more people are accessing services under the new programme; support after employment placement is now better targeted; the jobs obtained appear to be more sustainable; and the time it takes for a participant to commence in services after referral has increased. The Government indicates that the final evaluation report will be completed in the 2012–13 financial year. Furthermore, the Committee notes that an Employment Assistance Fund which began in March 2010 to provide financial assistance to employers, individuals and employment service providers for modifications to workplaces, adaptive equipment, disability awareness training, and workplace assessments. 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 Committee notes that Experience+ is a programme which aims to help older workers remain engaged in the labour market and encourage the transfer of skills to younger generations. Services delivered under Experience+ began in July 2010 and include: free professional career planning for persons aged 45 years and over; and grants for employers to allow older workers to become mentors or supervisors of apprentices or trainees. With regard to younger workers, the Government announced in the 2011–12 federal budget a number of measures to give young persons greater incentives, support and opportunities to engage in education, training and employment that will help secure their future in the labour market. The Committee invites the Government to continue to provide information on the measures taken to encourage and support employment levels of older workers and younger workers.

Means to promote employment of indigenous peoples. The Government indicates that under the National Indigenous Reform Agreement (NIRA), the Council of Australian Governments has agreed to the target of halving the gap in employment outcomes between indigenous and non-indigenous Australians. To halve the gap by 2018, the number of workforce-age (15–64 years) indigenous Australians in employment will need to increase by around 100,000 persons, which represents an increase of almost 60 per cent when compared to the base year of 2008. The NIRA emphasises that investments from both mainstream and indigenous specific programmes and initiatives are needed to improve outcomes for indigenous Australians. The Government reports that, since its commencement on 1 July 2009 through 30 June 2011, Job Services Australia has achieved more than 80,500 job placements for indigenous jobseekers. The Indigenous Employment Programme complements Job Services Australia to help indigenous Australians obtain employment and participate in economic activities. Over the same period, there were 53,388 commencements in the Indigenous Employment Programme, of which 25,340 were employment placements and 29,048 were training places. The Committee notes the comments received from the Australian Council of Trade Unions (ACTU) indicating that it regrets that record spending has had little discernible impact on the employment rates of indigenous Australians. The ACTU is however hopeful that the review by the Government of the remote participation and employment servicing arrangements will provide an opportunity to improve the delivery of employment services to indigenous Australians. The Committee invites the Government and the social partners to include in its next report information on the impact of the specific measures taken to promote productive employment opportunities for indigenous people.

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

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.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the Government’s simplified report for the period ending in June 2007, as well as the replies to the matters raised in its previous direct request.

1. Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Government indicates that employment increased by 4.7 per cent, the equivalent of 464,900 jobs, between June 2005 and May 2007. The labour force participation rate reached a record high of 65 per cent in May 2007 with a participation rate of 57.8 per cent for women, which is also a record high. Unemployment has continued to decrease and was measured at 4.2 per cent in this same period, its lowest level since 1974. Since its last report, the Government has adopted the Workplace Relations Amendment (Work Choices) Act, 2005 which establishes the Australian Fair Pay Commission to determine and adjust minimum wages. The Commission also aims to promote economic prosperity in regard to the capacity for the unemployed and low-paid persons to obtain and remain in employment as well as to promote employment and competitiveness across the country. The Government also introduced a comprehensive reform of the welfare system in July 2006 aiming to increase the workforce participation of individuals who have been traditionally outside the labour market. Early analysis from the “Welfare to work” initiative indicates positive trends for parents and persons with disabilities. Under “Welfare to work” reforms implemented in July 2006, the Government invested 3.6 billion AUD to increase workforce participation for parents, persons with disabilities, older age persons and people that have been unemployed for a longer period of time. The Committee would appreciate receiving in the Government’s next report, the results of any evaluation done by the relevant authorities and the social partners on the impact of the “Welfare to work” reforms in terms of productive employment generation.

2. Means to promote employment of older workers and younger workers. The Government notes that the participation rate for persons aged between 45 and 64 has increased from 70.3 per cent in June 2005 to 72 per cent in May 2007. Although, the unemployment rate for this group of workers was measured at 2.6 per cent in May 2007 and remains below that of persons aged 15 to 44, the Government indicates that the average duration of unemployment for older workers is over 57 weeks compared to 28 weeks for younger workers. The unemployment rate for 15 to 19 year olds fell from 19.5 per cent in June 2005 to 17.6 per cent in May 2007 and the unemployment rate for 20 to 24 year olds has also decreased from 8.1 per cent in June 2005 to 6.3 per cent in May 2007. The Committee asks the Government to include in its next report information on the measures implemented in facilitating the reintegration of older workers in the labour market as well as to reduce the unemployment rate of younger workers.

3. Means to promote employment of indigenous people. The Government indicates that the national unemployment rate for indigenous persons aged 15 years and over has improved from 18.3 per cent in 2002 to 14.3 per cent in 2006. The report also indicates that indigenous jobseekers account for 11 per cent of the total number of jobseekers with a higher percentage measured in regional and remote areas. The Government plans to increase indigenous economic independence by providing a range of employment programmes and assisting members of this group in finding jobs by cooperating with employers. For the period 2006–07, Job Network members and other job placement organizations placed 50,100 indigenous people into work. This figure is twice the amount measured for the period 2003–04. The Committee recalls that Convention No. 122 has a “critical role to play in combating poverty and promoting social cohesion” (paragraph 495 of the 2003 General Survey on employment promotion), and asks once again to be kept informed on the impact of the measures taken to promote productive employment opportunities for indigenous people.

4. Article 3. Participation of the social partners in the formulation and application of policies. The Committee notes the information provided by the Government in its report on the composition of the Welfare to Work Consultative Forum and the Disability Advisory Group which includes representatives from employer and worker organizations. The Committee recalls that the Convention asks Governments to ensure that workers and employers organizations as well as other interested groups are to be consulted “with a view to taking fully into account their experience and views”. It asks the Government to keep providing information on the manner in which the views of employers, workers and other affected groups are taken sufficiently into account in the development, implementation and review of employment policies and programmes.

Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

The Committee notes the comprehensive information contained in the Government’s report for the period ending in June 2005, as well as the detailed replies in response to its 2003 direct request.

1. Articles 1 and 2 of the Convention. The Government indicates that it contributes to the promotion of full, productive and freely chosen employment through supporting jobseekers with income support and providing customized active labour market assistance through the Job Network that operates within the framework of the Active Participation Model (APM). The APM, introduced in July 2003, offers simplified access and streamlined services, while providing jobseekers with continuous service that increases on the basis of time unemployed and individual need. These measures are supported by targeted industry strategies that improve connections between employers and employment services. In response to the need to increase workforce participation, the Government indicates that it has announced, in its 2005-06 budget, a comprehensive reform of the welfare system. The key focus of the reform is on increasing the workforce participation of individuals who have been traditionally outside the labour market - parents, mature age jobseekers, people with disabilities and the very long-term unemployed - while maintaining a strong safety net for those who need it. The Committee asks the Government to keep providing in its next report any available assessment of the effect which the reforms in the welfare system have had on employment. The Committee also requests that the Government give information on parents traditionally outside the labour market and on the specific reforms designed to increase their labour market participation.

2. For the period covered by the report, the Government indicates that employment growth has been particularly strong. The data contained in the Government’s report for that period show that during this period:

-  the level of unemployment decreased by 1.2 per cent to 528,500, to stand at 5.0 per cent, its lowest level since November 1976;

-  the female labour force participation rate has risen from 56.1 to 57.2 per cent while the male labour force participation rate has increased by 0.9 percentage points to 72.4 per cent;

-  the number of people who were long-term unemployed declined by 41,300, falling by 27,400 for males and by 13,800 for females;

-  despite varying patterns of labour-market activity, employment has increased by 571,900 or 6.1 per cent;

-  the unemployment rate for older jobseekers stood at 2.9 per cent in June 2005 and remains well below that for persons aged 15 to 44;

-  the unemployment rate for teenage workers (aged 15-19 years old) fell by 2.0 per cent reaching 19.8 per cent;

-  the unemployment rate for non-English speakers decreased from 7.9 per cent in June 2003 to 6.2 per cent in June 2005.

3. In reference to the Committee’s previous comments, the Government states that there was a marked improvement in both the number of placements and the number of long-term jobs achieved for jobseekers by Job Network members and other job placement organizations. In the 2004-05 financial year, there were over 665,800 placements recorded by Job Network members and other job placement organizations, which represents an increase of 29 per cent from the previous year. The Committee takes due note of these data and asks the Government to continue to provide information on the outcome of these programmes, and on progress made in improving equity of access and balancing quality and flexibility.

4. Further to previous comments concerning the implementation of a programme of further assistance for indigenous Australians: Australians Working Together, the Government indicates that more indigenous jobseekers access Australia’s mainstream employment service, Job Network, than other elements of the indigenous Employment Policy combined. In the financial year 2004-05, a total of over 9,900 long-term jobs were recorded by Job Network members and other job placement organizations for Indigenous jobseekers, more than double the previous year. The Committee would appreciate continuing to receive information on promotion of employment for indigenous people.

5. Participation of the social partners. In reference to the Committee’s previous comments, the Government explains that social partners are widely consulted on reforms and programmes with an impact on employment. It refers to the consultations that took place in connection with the Job Network, the Australians Working Together programme and the reforms in the welfare system. The Government also indicates that similar consultations will take place to help the implementation of the Welfare-to-Work package announced in the 2005-06 budget. The Committee has taken note of this information and trusts that the Government will continue to provide, in its next report, updated information on how representatives of workers’ and employers’ organizations are regularly consulted on employment promotion issues (Article 3).

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the comprehensive information contained in the Government’s reports for the period ending in June 2003 as well as the detailed replies in response to 2001 comments. It also notes the informative contribution made by the State of New South Wales in 2002.

1. Articles 1 and 2 of the Convention. The Government states that, notwithstanding weak global economic conditions, labour market conditions have not deteriorated significantly. The data contained in the Government’s report for the three years to June 2003 show that during this period:

-  the level of unemployment increased by 2 per cent to 618,700. The unemployment rate peaked during this period at 6.9 per cent from July to October 2001, before declining to 6.1 per cent;

-  the female labour force participation rate has risen from 55 to 56.1 per cent while the male labour force participation rate has fallen by 0.9 percentage points to 71.8 per cent;

-  the number of people who were long-term unemployed declined by 19,700, falling by 15,300 for males and by 4,400 for females;

-  despite varying patterns of labour market activity, employment has increased by 429,600 or 4.7 per cent, at an annual rate of 1.6 per cent;

-  the unemployment rate for older jobseekers fell by 0.2 percentage points, compared with an increase of 0.1 percentage points for those aged under 45;

-  the unemployment rate for teenage workers (aged 15-19 years old) rose by 1.6 per cent reaching 21.8 per cent;

-  the unemployment rate for non-English speakers decreased slightly from 8.1 per cent in February 2000 to 7.9 per cent in June 2003.

2. In reference to the Committee’s previous comments the Government states that the job network is now in its third employment services contract which commenced on 1 July 2003. The third stage differs from the previous two in that approximately 60 per cent of nationally available job network services and the New Enterprise Incentive Scheme (NEIS) business was allocated to the highest performing intensive-assistance, job-search training and NEIS providers under the second contract period. The remaining 40 per cent of business was selected through a competitive tender process. Through this process the Government seeks to deliver a better quality of assistance to unemployed people, leading to stronger and more sustainable employment outcomes while achieving a better value for money in the expenditure of public funds. Please continue to provide information on the outcome of these programmes, and on progress made in improving equity of access and balancing quality and flexibility.

3. The Committee notes that in the document entitled "Participation support for a more equitable society" the Government sets out strategic directions for fundamental reforms to the welfare system over the short, medium and long term. The recommendations are underpinned by five key reform principles: individualized service delivery; a simpler income support system; incentives and financial assistance; mutual obligation; and social partnerships. It also explains that the reform package focused on better welfare services, improved incentives to work and fair requirements for those receiving a welfare benefit. The Committee asks the Government to supply in its next report any available assessment of the effect which the reforms in the welfare system have had on employment.

4. Further to previous comments, the Government states that it has implemented a programme of further assistance for indigenous Australians: Australians Working Together. The programme seeks the establishment of indigenous employment centres (IEC) to offer mentoring, work experience, job-search support and access to training. The IECs will assist up to 10,000 community development employment project participants to find work. The programme also includes community participation agreements to identify practical ways that remote indigenous Australians can contribute in return for the income support payment, 12 remote area servicing centres and increased education and training assistance for 1,600 indigenous secondary-school students and 2,300 indigenous students in vocational education and training. In 2000-01 a total of 6,610 jobs were created through the Indigenous Employment Programme. The Committee would appreciate continuing to receive statistical information on the impact of these programmes on promotion of employment for indigenous people.

5. Article 3. In reference to the Committee’s previous comments the Government explains that social partners are widely consulted on reforms and programmes with an impact on employment. It refers to the consultations that took place in connection with the job network, the Australians Working Together programme and the reforms in the welfare system. The Committee has taken note of this information and trusts that the Government will provide, in its next report, updated information on how representatives of workers’ and employers’ organizations are regularly consulted on employment promotion issues.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the information contained in the Government’s report for the period 1 July 1998 to 30 June 2000, as well as the information provided by the Australian Capital Territory and South Australia.

1. Article 1 of the Convention. The Government states that employment growth was strong during 1997-2000, averaging 2.3 per cent per year from July 1998 to May 2000. During 1998-99, employment growth was 1.7 per cent. During 1999-2000, employment growth was 2.8 per cent. Industries with the most employment growth include services, construction and communication services. The labour force participation rate was 63.2 per cent in 1998-99 and 63.3 per cent in 1999-2000. Unemployment fell from 8.1 per cent in July 1998 to 6.1 per cent in May 2000, which is the lowest level since June 1990. Long-term unemployment as a percentage of total unemployment was 28.6 per cent in May 2000. The unemployment rate for teenage workers (15-19 years of age) decreased from 28.4 per cent in July 1998 to 21.4 per cent in May 2000 and full-time employment grew by 9.8 per cent between July 1998 and May 2000. Unemployment among non-English speakers fell from 16.3 per cent in 1993 to 8.1 per cent in February 2000.

2. The Government aims to promote employment through economic growth, regulatory reform of small business and reform of the workplace relations system. The Government’s macroeconomic policy aims to increase national savings, balance budgets over the economic cycle, decrease the national debt and promote general economic stability and low inflation.

3. In response to previous comments, the Government explains that the proportion of workers over 45 years of age is increasing. The increasing participation rate of this cohort is mainly due to the entry of more women into the labour market. The rate of unemployment for this age group is lower than the total, but the average duration is 86.5 weeks, which is much higher than the general average. Please continue to furnish information on progress made in promoting employment of older workers, particularly those who have been unemployed for more than 12 months.

4. Article 2. The Committee notes that the job network is to be evaluated in three stages. The Government states that the first stage has been completed. According to the findings, implementation went well - quality of service provided has increased and is more tailored to the individual. Areas for improvement identified in the evaluation include equity of access and balancing quality of service with flexibility. The second stage was to be completed by the end of 2000 and the third stage by 2001. The Committee would appreciate receiving information on the outcome of these latter evaluations, and on progress made in improving equity of access and balancing quality and flexibility.

5. The Committee notes that the Mutual Obligation Arrangement requires people up to 35 years of age to either participate in training or the Work for the Dole Programme. The evaluation of the pilot project indicated that three months after completing a dole job, 34 per cent of participants were working and another 23 per cent had found part-time work. Please continue to supply information on the outcome of the long-term impact of these programmes on employment promotion.

6. Further to previous comments, the Government states that it has implemented a Regional Assistance Programme to develop mainly rural and remote areas. It provides seed funding for community projects, as well as job network services. The Committee would appreciate continuing to receive information on the impact of these programmes on employment promotion in rural areas.

7. The Committee notes that the Government’s goals concerning indigenous people include increasing the participation rate, implementing community development projects and providing support to small businesses. It would appreciate receiving statistical information on the impact of these programmes on promotion of employment for indigenous people.

8. Article 3, in conjunction with Article 2. The Government states that the Department of Employment, Workplace Relations and Small Business (DEWRSB) evaluates employment programmes and that the Productivity Commission and National Competitiveness Council also conduct evaluations. Please provide information on whether representatives of employers’ and workers’ organizations, or representatives of other groups affected, are consulted during the evaluation process. The Committee also notes the Government’s statement that the Chamber of Commerce and Industry, the Australian Council of Social Services and the National Employment Services Association regularly meet with the Minister for Employment. Please supply further information on how representatives of workers’ organizations are regularly consulted on employment promotion issues.

Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes with interest that the Government has amended the Workplace Relations Act with the aim of promoting employment by accommodating the needs of workers, particularly older workers and women. The amendments permit employers and workers to negotiate alternative working arrangements, such as job sharing, part-time work and gradual phasing in of retirement. An employer is now prohibited from firing an older worker unless he or she can prove that the age limit is an inherent requirement of the job; and compulsory retirement at 65 years of age in the public sector has been abolished. There are also special programmes to help the re-entry of people who have left the labour market to care for others. The Committee would appreciate continuing to receive information on the impact of the Workplace Relations Act on employment promotion.

Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

The Committee notes the detailed and informative report submitted by the Government concerning the implementation of the National Job Creation Strategy and evaluation of the various programmes. The Government states that the major source of growth of employment has been part-time employment, although growth of full-time employment picked up in 1997 and 1998. According to the OECD Employment Outlook 1999, a persistently high proportion of female labour force participants are in part-time employment (40.7 per cent in 1998). Although many of these part-time jobs are permanent, the growth in casual part-time work has increased more rapidly. The OECD Employment Outlook 1999 also indicates that there has been a substantial increase in the long-term unemployment of men, from 24.4 per cent of male unemployment in 1990 to 36.5 per cent in 1998. During this same time, there was a substantial decrease in public expenditure on labour market training for the unemployed, from 0.16 per cent of GDP in 1994-95 to 0.06 per cent in 1997-98, and the participation rate of the unemployed in training schemes fell from 3.7 per cent in 1994-95 to 1.6 per cent in 1997-98. The Committee would appreciate continuing to receive information on the situation, level and trends of employment, unemployment and underemployment as they affect various categories of workers, such as part-time workers seeking full-time work and the long-term unemployed, as requested in the report form under Article 1 of the Convention. The Committee also notes with interest the decline in unemployment among older workers, despite an increase in the participation rate for this cohort. It would appreciate receiving further details on the specific policies underlying this change. Lastly, the Committee would be grateful if the Government would include in its next report information on policies to promote balanced regional development and assist areas with particularly high levels of unemployment.

Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

1. The Committee took note with interest of the Government's report for the period ending June 1996, which contains extensive and detailed information together with a series of relevant documents. It notes that the upturn in employment growth, which was already perceptible at the end of the previous period, has been confirmed with an average annual rate of 4 per cent in 1994-95 and 2.6 per cent in 1995-96; despite the increase in activity rates, particularly for women, this enabled the unemployment rate to be reduced to 8.5 per cent in 1996 from 9.7 per cent in 1994. The share of long-term unemployment, which stood at 36 per cent in 1994, was reduced to under 30 per cent of total unemployment in 1996.

2. The Government which took office in March 1996 states that it has undertaken to implement a National Job Creation Strategy which is designed to increase the employment growth rate for all Australians, in particular young people, by creating a climate favourable to economic growth. The medium-term budget policy aims to reduce the public deficit so as to increase the national savings available for the financing of private activity. Industrial and commercial policy is designed to accelerate the internationalization of the economy, while minimizing the cost of structural adjustment by means of regional or sectoral measures. In addition, wage policy emphasizes decentralized negotiation at enterprise level so as to guarantee the labour market flexibility necessary to create jobs. Noting that the aim which the previous Government had set itself of achieving an unemployment rate of around 5 per cent by the end of the decade, has not been retained, the Committee hopes that the next report will contain an interim assessment of the way in which the new economic policies are helping to further the employment goals of the Convention and in particular on any impact on general wage levels.

3. The Committee also notes the detailed information provided on active labour market policy measures and the assessment of their effectiveness. In particular, it notes that special efforts continue to be devoted to reintegrating the long-term unemployed. The Committee requests the Government to continue to provide such information and to describe the reforms undertaken to improve the results obtained by these measures. It also notes the provisions creating closer links between the payment of benefits and the active search for employment, and requests the Government to continue to provide information on any new measures taken with a view to achieving better coordination between the mechanisms supporting the income of unemployed people and employment promotion. Finally, the Committee notes that, following the repeal of the Training Guarantee Act, reforms have been undertaken to better adapt training to the needs of employers and employees. The Committee invites the Government to describe any new measures for the coordination of education and training policies with employment prospects, taking also into account the provisions of the Human Resources Development Convention, 1975 (No. 142).

Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

1. The Committee notes the Government's report for the period ending June 1994, which contains full and detailed information and transmits useful documentation in annex. The Government states that, following the emergence of the economy from recession, employment started to improve from the end of 1993. Although moderate at first, the growth of employment accelerated in 1994, making it possible to bring the unemployment rate down to 9.7 per cent, as compared with 10.7 per cent in 1992. According to the OECD, this trend for the unemployment rate to fall has continued since the end of the reporting period, reaching a rate of 8.7 per cent in June 1995. The proportion of long-term unemployment, which accounted for 39 per cent of total unemployment at the end of 1993, began to decline and reached the level of 36 per cent in 1994.

2. Despite the improvements over the reporting period, the Government continues to consider that the level of unemployment remains unacceptable. The Committee notes that when the Government submitted its White Paper on Employment and Growth to Parliament in May 1994, the Government reaffirmed its commitment to the achievement of the objective of full employment and stated that the White Paper should be considered as a reaffirmation of the principle of the right of everyone to work. The strategy is based on economic growth, which is considered to be the necessary prerequisite, although not sufficient in itself, for the reduction of unemployment. The Government therefore decided to intervene directly on the labour market and set the objective of achieving an unemployment rate of around 5 per cent by the end of the decade. The priority accorded to employment promotion has also been endorsed by the comprehensive Accord concluded with the Australian Council of Trade Unions (ACTU), which includes the creation of a minimum of 500,000 jobs over the period 1993-96 among its fundamental objectives. The Government describes in detail in its report the principal economic instruments adopted to promote the expansion of the economy and of employment: monetary policy is designed to contain inflation and decrease interest rates, while budgetary policy, although remaining active, is designed to balance public finances in the medium term through a renewal of growth. The wages policy agreed with the ACTU has to contribute to containing inflation and improving the competitiveness of the economy by linking wage increases to productivity increases in the context of decentralized negotiations. The Committee requests the Government to continue supplying information on the achievement of the objectives set in the fields of employment and unemployment, as well as on the manner in which the measures adopted to promote employment are decided upon and kept under review within the framework of a coordinated economic and social policy, in consultation with the representatives of employers and workers, in accordance with Articles 2 and 3 of the Convention.

3. The Government also provides substantial information on the active labour market policy measures implemented under the initiatives set out in the White Paper. The Committee notes the particular attention paid to the long-term unemployed, who benefit from individual case management and adapted training and employment service support. It also notes the series of programmes intended to promote the vocational integration of young persons, women, aboriginal persons, and persons with disabilities. The Committee requests the Government to continue supplying information on the implementation of these programmes. Noting that the Training Guarantee Act of 1990 has been suspended for two years, following its first evaluation, the Committee requests the Government to refer to the new measures adopted to promote entry-level training and further training by enterprises.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's report for the period ending June 1992, which as usual, contains detailed information in reply to each of the questions contained in the report form and supplies valuable documents annexed to the report. The Government states that the high growth in employment which had characterized the previous reporting period was reversed as from the middle of 1990. Since then, total employment has declined by 2.3 per cent (and full-time employment by nearly 6 per cent). In view of the maintenance of a high participation rate, particularly among women, the unemployment rate, which was below 7 per cent in 1990, increased rapidly up to nearly 11 per cent in 1992-93. The Government considers that this level of unemployment is "unacceptably high" and is concerned that long-term unemployment erodes the dignity of workers and social cohesion.

2. For the Government, the particular difficulties encountered in achieving the objectives set out in the Convention are principally associated with the economic recession. Although it states that it is convinced that the key to reducing unemployment is sustained and strong growth, it nevertheless considers that, due to the long process of restructuring which has been embarked upon, employment is likely to respond more gradually to the recovery in demand than in previous recoveries. Furthermore, the Government of South Australia also draws attention to the foreseeable consequences on employment of the deregulation of trade: according to its estimates, the progressive reduction of customs tariffs between 1992 and 2000 will result in a 20 per cent reduction in employment in South Australia.

3. The Committee notes with interest that the Government reaffirms in this context that full employment remains a fundamental objective, as illustrated for example by the document issued to accompany the presentation of the 1992-93 budget, which is attached to the report. The economic policy, which is aimed at improving the medium and long-term growth prospects of the economy, which are necessary for a lasting increase in employment and a rise in living standards, is based on containing the increase in real wages, including minimum wages, by means of the prices and wages agreement concluded with the trade union movement, measures to combat inflation which have resulted in a significant decrease in interest rates, and the pursual of fiscal reforms to encourage investment by enterprises. The Government also states that, in the short term, its budget policy has become more stimulatory by allowing an increase in the budget deficit and undertaking new expenditure with a view to stimulating economic activity and employment. In view of the results obtained in respect of inflation and interest rates, and the persistance of a high unemployment rate, the Committee would be grateful if the Government would continue to indicate the manner which, in accordance with Article 2 of the Convention, measures adopted to promote employment are decided upon and kept under review "within the framework of a coordinated economic and social policy".

4. The Committee also notes the information concerning the labour market policy measures adopted by the federal Government and by the States. Expenditure on these programmes practically doubled between 1991-92 and 1992-93. For the Government, in view of the need for competitiveness, the flexibility and "efficiency" of the labour market are vital factors in the adjustment process. In the context of the globalization of the economy and the resulting pressures, high priority is therefore given by both the federal Government and state governments, to the training and mobility of the workforce. In this respect, the Government of Queensland emphasizes that skills development is a responsibility which the Government has to share with enterprises, which derive economic benefit from it. The Committee would be grateful if the Government would supply the evaluation, which is planned for 1994, of the application of the Training Guarantee Act of 1990, which places enterprises under an obligation to allocate a certain level of expenditure to financing training activities. The Government also describes the new system of unemployment protection which came into force in July 1991, which marks a closer liaison between unemployment benefit and programmes of active measures. Finally, the report also describes inter-ministerial iniatiatives to promote the employment of women, persons with disabilities and older workers. The Committee requests the Government to supply all available information in its next report on the impact of the various employment measures on the persons concerned.

Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

1. The Committee has taken note of the Government's detailed report for the period ending June 1990, which contains replies to its previous observation. It notes that the rapid growth of employment continued during the period under consideration; total employment increased by 3.8 per cent in 1989-90, particularly to the advantage of women. Despite the increase in already high participation rates, the unemployment rate was reduced from 7.3 per cent in June 1988 to 6.4 per cent in June 1990. However, the Government mentions in its report a slow-down in economic growth at the beginning of 1990. This trend, inimical to employment, has grown more marked since the end of the period covered by the report, and the recession that began in mid-1990 has led to a swift increase in the unemployment rate, which according to OECD was close to 10 per cent by mid-1991.

2. The Committee notes the full information supplied by the Government concerning the objectives of its economic policy in relation to employment. The thrust of budgetary and monetary policy has been to reduce inflation and public indebtedness in the medium term; fiscal policy is designed to create a favourable environment for investment and employment, whereas price and incomes policy continues to aim, pursuant to the agreement between the federal Government and the Australian Council of Trade Unions (ACTU), at wage moderation, labour flexibility and improved productivity. The Committee further notes with interest the far-reaching current reform of wage-fixing methods: applying the "Structural Efficiency Principle", the Australian Industrial Relations Commission has undertaken an overhaul of the system of industrial awards designed to eliminate impediments to the mobility and qualification of workers so as to afford them access to more varied, more fulfilling and better-paid jobs. The Committee would be grateful if the Government would supply in its next report any available assessment of the effect which the changes in the wage fixation system have had on the employment market.

3. As part of its labour market policy, the Government has endeavoured to strengthen the vocational training provided by undertakings and by education and training institutions. The Government's expenditure on training has been increased and the Training Guarantee Act 1990 now places undertakings under an obligation to allocate a certain level of expenditure to financing approved training activities. The Committee notes further the information given concerning training programmes to encourage integration or reintegration in the labour market, supplied by the Government in its report on the application of the Human Resources Development Convention, 1975 (No. 142). The Committee would be grateful if the Government would continue to supply information on the development of these programmes and their effects on the employment of the categories of persons concerned.

4. The Committee has taken note of the information concerning objectives designed to promote reform of the labour market and structural adjustment in industry through action on the practices of labour and management, the organisation of work, and industrial relations. It has also taken note of the initiative which was announced in the Government's economic policy statement of February 1990 and which is designed to restructure measures of aid to the unemployed and to institute reform of employment programmes. The Committee would be grateful if the Government would supply information on the follow-up of the these reform programmes. More generally it hopes, having regard to the recent developments in the employment market situation referred to above, that the Government will state in its next report whether it has proceeded under Article 2 of the Convention to re-examine, within the framework of a coordinated economic and social policy, the measures to be adopted in order to promote full, productive and freely chosen employment, as a major goal in accordance with Article 1.

Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee has noted the Government's helpful and detailed report for the period ending June 1988, containing replies to the previous observation. It notes in particular the enactment of the Employment, Education and Training Act (No. 80 of 1988) which aims at providing a co-ordinated framework of advisory structures in employment, education and training. The report, recognising that labour market outcomes are the result of a broad range of macroeconomic and microeconomic policies, describes the Government's policies in various fields as they relate to employment: such as fiscal and monetary policies; investment policies including tax reforms; industry and trade policies including reducing significantly assistance to industry; and prices, incomes and wages policies including the introduction of a two-tiered wage system by the National Wage Case decision of 10 March 1987, with a view to replacing the system of wage indexation which had operated since 1983. As to the labour market policies, the Government indicates the shift in emphasis in favour of education and training, moving away from job-creation activity lacking a formal training element, as well as the high priority given to assisting the long-term unemployed and other particularly disadvantaged persons.

2. The Committee notes with interest a variety of schemes and programmes for job creation and employment assistance and for education and training referred to in the report, some of which have recently been undergoing revision and reorganisation (for example, the abolition in 1987, in line with the above-mentioned shift in emphasis in government policy, of a short-term job creation scheme, the Community Employment Programme; the integration of some community-based assistance programmes into a new one called "Skillshare" targeted specifically at long-term unemployed and other disadvantaged groups).

3. The Committee notes the Government's indication that strong employment growth in 1987-88 (with full-time employment rising by 2.4 per cent and part-time employment by 5.8 per cent) more than offset the increase in the labour force, and the unemployment rate declined from 8.4 per cent in January 1987 to 7.3 per cent in June 1988; a fall in long-term unemployment is also pointed out. It hopes that the Government will continue to supply information on the development and results of the policies to achieve the aims of the Convention, with particular reference to the effects of labour market programmes, especially training programmes, upon subsequent employment of persons involved. The Committee would also be grateful if the Government would provide an evaluation of the impact on the labour market of changes in industry and trade policy and in the wage-fixing system.

4. Concerning the machinery for consultation with the persons affected (Article 3 of the Convention), the Committee notes that the Australian Council for Employment and Training has been replaced by the National Board for Employment, Education and Training, established under the above-mentioned Act, consisting of members appointed by virtue of individual skills and expertise (however, two of them are required to have expertise relating to trade unions and two relating to business or industry). The Committee looks forward to receiving further information on advisory activities of this Board and other advisory councils and committees under the said Act as well as on relevant policies and programmes consequently developed. Finally, it would also be grateful if the Government would supply information on the consideration given to the recommendations, relevant to the matters covered by the Convention, made by the National Labour Consultative Council in its 1987 report on "Labour Market Flexibility in the Australian Setting".