ASIA
26 March 2014
Getting Australians into Jobs
Australia has great success in getting its citizens into jobs, thanks to the effectiveness of its employment services industry and the National Employment Services Association.
Australia has great success in getting its citizens into jobs, thanks to the effectiveness of its employment services industry and the National Employment Services Association (NESA). But the lucky country still faces important challenges in an increasingly complex economic environment.
All countries, including Australia, suffer from the co-existence of job vacancies and unemployment. Sometimes unemployed workers don't have the right skills to fill the vacant positions (skills mismatch). Sometimes unemployed workers do not live in the same location as the vacant positions.
Certain social groups can have particular challenges finding a job, such as the long-term unemployed, women, youth, seniors, physically and mentally handicapped, military veterans, former criminals, migrants or indigenous peoples. For example, only 46% of working age indigenous Australians had a job in 2011, compared with 72% for the non-indigenous population.
This is why governments have programs to help get people into jobs. It is not only a question of giving people a "fair go". It is equally a matter of using the full potential of the nation's human resources.
For example, closing the gap between male and female participation rates could increase Australia's GDP by 13% or $180 billion. In a similar vein, increasing labor market participation rates and reducing unemployment rates for people with disability would also lead to an important increase in GDP.
The evidence also shows that mental and psychological health is closely linked to one's employment status. People typically derive a great share of their sense of self worth from their job.
In particular, long-term unemployment is considered to be one of the biggest public health risk factors. Not working for six months or more has been found to be an equivalent health risk factor to smoking 10 packets of cigarettes each day.
This highlights the immense benefits of successfully placing job seekers into vacant positions.
Australia's employment service was contracted out by the Howard government in 1998. Australia is currently the only OECD country to wholly outsource the delivery of publicly funded employment services. The main providers are private companies, foundations and non-government organisations.
The Australian system of contracted employment services is highly regarded internationally and is credited with assisting Australia in having one of the highest employment rates of the OECD group of countries.
This week in Sydney, NESA's fourteenth National Conference brought together Australia's employment service providers to discuss and exchange views on future directions and innovations both nationally and internationally -- and in particular, a Roadmap for 2015 and beyond.
Participants heard presentations by a wide range of speakers, including: Luke Hartsuyker, Federal Assistant Minister for Employment; Renee Leon, Secretary of the Department of Employment; Sally Sinclair, CEO of NESA; Ron Painter, CEO of the US National Association of Workforce Boards; Brendan Hammond, former Managing Director of Argyle Diamonds; Major General John Cantwell; Pat Brahim, General Manager of Julalikari Council Aboriginal Corporation; Professor Ian Hickie of the National Mental Health Commission; and John West, Executive Director of the Asian Century Institute.
The breadth of topics discussed was as vast as it was fascinating, such as employment and participation; indigenous employment and participation; social enterprises; mental health; overcoming long term employment; remote jobs and communities; microfinance; and extracting leverage through creativity.
The conference discussions revealed an industry full of energy, dynamism, creativity and innovation. Learning from peers is a powerful motor for progress.
But as NESA CEO Sally Sinclair said:
"Employment and related services in Australia are operating in very challenging circumstances. Providers are feeling financial pressures alongside the significant administrative and compliance requirements. With the new Government in place we see an excellent opportunity for reducing red tape and for recalibrating employment services to realise our potential."
These words could not be more pertinent. While Australia's unemployment rate of 5.7% is very low by international standards, labor market performance is unsatisfactory in many respects. Employment growth is well below long-term trends. And part-time employment is dominating job creation, as there have been net losses of full-time jobs. Further, the participation rate is at its lowest level since October 2006, while the vacancy rate is below its March 2008 peak.
Long-term unemployment has risen dramatically, especially for mature age workers. And most tragically, over 500,000 children aged 0-14 live in jobless families, where they learn the culture of unemployment.
A major problem area is youth, where far too many are not in employment, education or training. They are disengaged from the labor market and face a bleak future.
Looking ahead, Australia's employment woes are far from over. Employment growth is set to slow in the years ahead as the mining boom shifts from the labor-intensive construction phase to production and exports. And the manufacturing and service sectors will continue to suffer from the high value of the Australian dollar.
The great lesson of Australia's recent labor market trends squares with international experience. With the continued ongoing shift to higher skilled jobs, higher education is ever more important, but not only education. In particular, employers are looking for experience, technical skills, relevant education, literacy and numeracy, and employability skills. More than 70% of Australian employers pay particular attention to the employability skills of applicants, namely, enthusiasm, reliability, communication, confidence and motivation, which are reportedly all too often lacking in job applicants.
In this context, Australia needs more than ever an employment services industry that realises its potential -- all the more so since Australia's working population is aging and the tax burden for government services falls upon a shrinking pool of those able and eligible to work.
As the voice for the employment services industry, NESA works to advance the development of employment services across Australia through its representation, advocacy and industry leadership.
On behalf of the industry, NESA works with Government, employers and others to achieve ongoing development of employment services for Australian job seekers and businesses. It is especially focussed on ensuring that the diverse and complex needs of disadvantaged Australians can be met to improve opportunities for employment and inclusion.
Executive Director
Asian Century Institute
www.asiancenturyinstitute.com
All countries, including Australia, suffer from the co-existence of job vacancies and unemployment. Sometimes unemployed workers don't have the right skills to fill the vacant positions (skills mismatch). Sometimes unemployed workers do not live in the same location as the vacant positions.
Certain social groups can have particular challenges finding a job, such as the long-term unemployed, women, youth, seniors, physically and mentally handicapped, military veterans, former criminals, migrants or indigenous peoples. For example, only 46% of working age indigenous Australians had a job in 2011, compared with 72% for the non-indigenous population.
This is why governments have programs to help get people into jobs. It is not only a question of giving people a "fair go". It is equally a matter of using the full potential of the nation's human resources.
For example, closing the gap between male and female participation rates could increase Australia's GDP by 13% or $180 billion. In a similar vein, increasing labor market participation rates and reducing unemployment rates for people with disability would also lead to an important increase in GDP.
The evidence also shows that mental and psychological health is closely linked to one's employment status. People typically derive a great share of their sense of self worth from their job.
In particular, long-term unemployment is considered to be one of the biggest public health risk factors. Not working for six months or more has been found to be an equivalent health risk factor to smoking 10 packets of cigarettes each day.
This highlights the immense benefits of successfully placing job seekers into vacant positions.
Australia's employment service was contracted out by the Howard government in 1998. Australia is currently the only OECD country to wholly outsource the delivery of publicly funded employment services. The main providers are private companies, foundations and non-government organisations.
The Australian system of contracted employment services is highly regarded internationally and is credited with assisting Australia in having one of the highest employment rates of the OECD group of countries.
This week in Sydney, NESA's fourteenth National Conference brought together Australia's employment service providers to discuss and exchange views on future directions and innovations both nationally and internationally -- and in particular, a Roadmap for 2015 and beyond.
Participants heard presentations by a wide range of speakers, including: Luke Hartsuyker, Federal Assistant Minister for Employment; Renee Leon, Secretary of the Department of Employment; Sally Sinclair, CEO of NESA; Ron Painter, CEO of the US National Association of Workforce Boards; Brendan Hammond, former Managing Director of Argyle Diamonds; Major General John Cantwell; Pat Brahim, General Manager of Julalikari Council Aboriginal Corporation; Professor Ian Hickie of the National Mental Health Commission; and John West, Executive Director of the Asian Century Institute.
The breadth of topics discussed was as vast as it was fascinating, such as employment and participation; indigenous employment and participation; social enterprises; mental health; overcoming long term employment; remote jobs and communities; microfinance; and extracting leverage through creativity.
The conference discussions revealed an industry full of energy, dynamism, creativity and innovation. Learning from peers is a powerful motor for progress.
But as NESA CEO Sally Sinclair said:
"Employment and related services in Australia are operating in very challenging circumstances. Providers are feeling financial pressures alongside the significant administrative and compliance requirements. With the new Government in place we see an excellent opportunity for reducing red tape and for recalibrating employment services to realise our potential."
These words could not be more pertinent. While Australia's unemployment rate of 5.7% is very low by international standards, labor market performance is unsatisfactory in many respects. Employment growth is well below long-term trends. And part-time employment is dominating job creation, as there have been net losses of full-time jobs. Further, the participation rate is at its lowest level since October 2006, while the vacancy rate is below its March 2008 peak.
Long-term unemployment has risen dramatically, especially for mature age workers. And most tragically, over 500,000 children aged 0-14 live in jobless families, where they learn the culture of unemployment.
A major problem area is youth, where far too many are not in employment, education or training. They are disengaged from the labor market and face a bleak future.
Looking ahead, Australia's employment woes are far from over. Employment growth is set to slow in the years ahead as the mining boom shifts from the labor-intensive construction phase to production and exports. And the manufacturing and service sectors will continue to suffer from the high value of the Australian dollar.
The great lesson of Australia's recent labor market trends squares with international experience. With the continued ongoing shift to higher skilled jobs, higher education is ever more important, but not only education. In particular, employers are looking for experience, technical skills, relevant education, literacy and numeracy, and employability skills. More than 70% of Australian employers pay particular attention to the employability skills of applicants, namely, enthusiasm, reliability, communication, confidence and motivation, which are reportedly all too often lacking in job applicants.
In this context, Australia needs more than ever an employment services industry that realises its potential -- all the more so since Australia's working population is aging and the tax burden for government services falls upon a shrinking pool of those able and eligible to work.
About NESA
NESA represents and supports the employment and related services industry in Australia that help people to find sustainable employment. It wants all working-aged Australians to have the opportunity to participate in the economic and social life of our community.As the voice for the employment services industry, NESA works to advance the development of employment services across Australia through its representation, advocacy and industry leadership.
On behalf of the industry, NESA works with Government, employers and others to achieve ongoing development of employment services for Australian job seekers and businesses. It is especially focussed on ensuring that the diverse and complex needs of disadvantaged Australians can be met to improve opportunities for employment and inclusion.
Author
John WestExecutive Director
Asian Century Institute
www.asiancenturyinstitute.com