privatised employment services have failed

Exciting developments in our fight to end the privatisation of employment services!  

On 2 August 2022, the parliament established an inquiry into matters related to Workforce Australia Employment Services and the employment services system more broadly. Yesterday the committee handed down the final report.  

The report delivers a resounding verdict: privatised employment services have failed. Multinational corporations now dominate the sector, raking in colossal profits while neglecting their responsibilities to job seekers. The current system does not work for job seekers or employers.

The report acknowledges that reform is needed in our employment services. The recommendations include:

  • Establish a large Commonwealth public sector provider – Employment Services Australia

  • Creation of a watchdog – an Employment Services Quality Commission

  • Reform to the punitive mutual obligations system, with individual tailoring of plans and returning breach powers to the public service in Services Australia. This would include ending automated payment suspensions, and ensuring people have access to a human decision maker before their payments are suspended.  

  • Increasing regional services, with the public service working alongside localised specialist services

  • For the Australian Government to develop and publish a transition plan for the rebuilt Commonwealth Employment Services System by the end of 2024.

The report falls short in failing to recommend the abolition of mutual obligations, which is the ineffective and punitive compliance framework that underpins the current model. The recommended reforms in the report are positive, but a true departure from the current punitive system will require further significant work from the government.

While there is still much more work to do, the recommendations represent a significant stride forward in our campaign to create a modern, fit for purpose CES. As the Government considers these recommendations and develops their transition plan our campaign will be gearing up!  

You can read our full submission to the Workforce Australia inquiry here, and the committees final report here

Your support has been crucial in getting us here. Stay tuned for more updates and opportunities to take action.


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