Australian Public Service to play 'stewardship' role in employment service reforms

The planned reforms were unveiled on Monday as part of the government's employment white paper.

Building on the outcomes of last year's Jobs and Skills Summit, it outlines how the government plans to achieve its five objectives, including sustained and inclusive full employment, productivity growth, job security and sustainable wage growth, filling skills needs and breaking down barriers to employment.

Under the proposed changes, the government wants to broaden the definition of full employment to ensure that those who want to get a job are "able to find one without having to search for too long".

It has identified 10 policy areas in its Working Future paper that will act as a roadmap for its goals, including reducing barriers to employment, promoting inclusive workplaces and building capability through employment services.

Consultations undertaken for the paper "indicated that Australia's employment services system is seen as highly transactional and poorly tailored to the diverse and complex needs of people who use it".

Stakeholders have told the government that "the most disadvantaged job seekers are not adequately supported" within the current system.

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More than 944,000 job seekers use the government's key employment services: Disability Employment Services, Community Development Program and Workforce Australia.

The paper states that since Australia's employment services model was changed to fully outsource delivery, "there has been less personalised servicing, and less qualified and experienced frontline consultants".

The government wants to reform employment services, through eight key principles, which include building "a more active stewardship role for the Australian Public Service" to ensure individuals aren't left behind.

Additionally, the government wants to engage "a vibrant diversity of providers", which will include more Aboriginal and Torres Strait Islander community-controlled organisations.

As part of its employment services reforms, the government is making changes to the Local Jobs Program to better suit community needs and get more people into work.

That includes widening eligibility for the program so more people can take part and boosting APS support in Employment Facilitator services in a number of "micro employment regions with thin labour markets".

This will see public servants deployed to Broome, Geraldton and Kalgoorlie in Western Australia.

Employment Minister Tony Burke said the government was looking at "removing barriers" and getting job seekers into work.

"We need to make sure we use this opportunity to support some of the most disadvantaged people to connect with jobs," he said.

"We want to design a system that is tailored to meet their needs too. If we do that we don't just help employers fill gaps with workers they're desperately looking for, but we change people's lives."

The jobless rate this year has fluctuated between 3.5 and 3.7 per cent.

The government is expecting the economy to slow down but doesn't anticipate that figure to go above 4.5 per cent.

The government foresees Australia's economy and labour market in the coming years will be shaped by factors including an ageing population, rising demand for care and support services, technological advancement, climate change and a shift to net zero and geopolitical challenges.