Long-term jobless next target

by Jules Andrews

A flurry of pre-budget rumours abound, most signalling further cuts to 
welfare and services to the disadvantaged. John Howard's next target 
appears to be the long-term unemployed, restricting their use of the 
intensive assistance schemes set up for them, and taking his "get tough" 
activity requirements to new extremes.

Five years ago, Mr Howard abandoned the Commonwealth Employment Service 
(CES), and made the unemployed take out "accounts" with private companies. 
The reasoning was that profit-making companies would work harder at getting 
the unemployed back into employment.

He assured the tax-paying public that this scheme, accompanied by a "big 
stick" approach of harsh activity requirements and massive financial 
penalties, would empty the unemployment queues.

However, this strategy has had nil effect — the number of long-term 
unemployed remains at 380,000, the same as it was when he came to office.

"It's time for a more carrot-less stick approach to getting long-term 
unemployed people into jobs", said Australian Council for Social Services 
(ACOSS) President Andrew McCallum.

"If the time available to Job Network providers to help the most 
disadvantaged job-seekers is cut from one year to six months as rumoured, 
and job search requirements are toughened at the same time, many long-term 
jobless people will be set up to fail."

"Six months simply isn't enough time for providers to engage and 
effectively assist many job-seekers."

The recent Productivity Commission report has exposed a basic problem with 
the way that Job Network services are funded — providers are discouraged 
from investing in work experience and training for the most disadvantaged 
job-seekers.

There are two reasons:

* $1 billion was cut from the budget for employment assistance when the 
Network was introduced in 1997;

* Service providers are funded mainly on the basis of job outcomes. They 
see it as too much of a financial risk to make substantial investments to 
help disadvantaged job-seekers.

As with all essential government services, bringing the profit motive into 
the equation will only sees standards fall and leaves the public cheated.

Job Network providers, already having to compete for a share of "the 
unemployed people market", will inevitably go for the high-profit, high-
turnover goods.

As John Howard promised, those who remain will be forced off the dole 
queue. Though not into employment, just onto the streets in abject poverty.

A succession of government policies over the last 30 years has entrenched 
this stratum of long-term unemployed and disadvantaged within the 
community.

The system has achieved this by sacking hundreds of thousands of public 
servants, shutting down the CES, stripping billions from training and 
education budgets, and once again making education the preserve of the 
rich.

The private sector has also played a major role, sacking thousands of 
workers.

John Howard's lies are as thin as the hair on his head.

The dole queues will only be emptied when the government has a real desire 
to do so. This intention will be demonstrated when the government sets a 
goal of 100 per cent employment, adopts appropriate job creation policies 
and cuts military spending.