Job Network Reform Needed To Support Disadvantaged Job Seekers

Catholic Social Services Australia Executive Director, Frank Quinlan said today that current Job Network arrangements do not meet the changing needs of increasingly disadvantaged job seekers and that an urgent overhaul is needed if unemployed Australians are to look forward to long-term, meaningful jobs.

Mr Quinlan made the comments as he released A Job Network for Job Seekers , a comprehensive discussion paper on the negative impact of the highly competitive, cash-strapped Job Network arrangements on Australia's most disadvantaged job seekers.

"The paper examines current Job Network services, provider incentives and the impact of Government administration, revealing significant faults in the system which can all work against the best interests of job seekers," Mr Quinlan said.

The report calls for:

• Improved access to services for disadvantaged job seekers
• Improved incentives for Job Network providers for services provided to disadvantaged job seekers
• Reduced burden of administration and red tape.

Catholic Social Services Australia shares the Government's Job Network objectives of:

• getting the maximum number of job seekers into jobs
• getting job seekers into jobs as quickly as possible
• keeping job seekers in jobs for as long as possible, and
• getting jobs for long-term unemployed and other highly disadvantaged people.

"But the system currently works against all but one of these objectives," Mr Quinlan said.

"The report exposes the tension and frustration felt by Job Network agencies which are increasingly torn between doing the best for their disadvantaged clients and maintaining the bottom line. We are concerned that those providers who are helping job seekers most effectively and delivering on the Government's objectives risk financial disadvantage, even closure.

"The Star Ratings incentive system that drives provider behaviour rewards approaches to Job Network that can, in some circumstances, benefit the provider and not the job seeker. These perverse incentives reduce the quality of services to job seekers, increase welfare dependency, distort the Government's perception of comparative provider effectiveness and lead to misdirected Government outlays.

"While providers should ensure their services are ethical and effective, ultimately, the Government must accept responsibility for establishing financial and performance incentives for Job Network that do more than pay lip-service to its stated objectives in support of job seekers.

"Job Network is central to the Government's Welfare to Work reforms and needs to perform at its best if those reforms are to be successful.

"Our concerns are not new. Our colleagues in other agencies - church-based, not-for-profit and private industry - share many of our concerns. It is my hope that this report will help Government and industry find workable solutions," Mr Quinlan said.

Catholic Social Services Australia delivers Job Network services from 18 sites around Australia.

23 November 2006 CONTACT: Judith Tokley 02 6285 1366 / 0408 824 306