unemployment – Michmutters
Categories
Australia

Student jobseekers say $7b Centrelink changes are ‘penalizing’ them for studying

Rebekah Maslen has been working hard to prepare herself for a new career.

The Ocean Grove-based student is completing a diploma of early childhood education and care, which includes 24 hours per week on placement, plus about 15 hours of study and two days of classes.

She is also one of many Australians struggling to come to grips with the biggest overhaul of unemployment services in decades.

“I would say the transition has been appalling,” she said.

“The way I’ve been treated … and the lack of information around how to use the system in detail [has] not been a very good experience.”

At the start of July, more than 800,000 jobseekers transferred to Workforce Australia, which has been pitched as a more flexible alternative to the much-maligned jobactive system.

The changes were passed under the Morrison government with Labor’s support prior to the May election. Contracts with job service providers — private companies paid by the government to get people into work — worth $7 billion were also signed.

To continue receiving the JobSeeker payment, most people need to perform mutual obligations — tasks set by the government aimed at enhancing employability.

Under jobactive, mutual obligations most commonly revolved around job applications, and jobseekers needed to submit 20 a month. That requirement could be waived if a jobseeker was completing a Certificate III course or above, which includes diplomas.

Now, those required to complete mutual obligations have transitioned to a system where they earn points for completing a wider range of activities, such as short courses, getting a drivers license or attending a job fair.

If they do not receive a certain number of points each month, their payments can be suspended.

A white woman with blonde hair and red overalls sitting next to a computer screen that says 'how to earn points'
Rebekah Maslen has had trouble getting her placement hours recognized.(ABC NewsNorman Hermant)

Ms Maslen said she was told by her job provider that to comply with the new system she must apply for at least four other jobs every month on top of her diploma and placement.

She also said she had consistent difficulty finding a way to get points credit for her placement hours through the online portal.

“The things you’re asked to do for getting points, things like getting a forklift license … I don’t find very helpful as someone who’s studying,” she said.

‘It’s really demoralizing’

The government made a series of tweaks to the design of Workforce Australia days before it launched.

Employment Minister Tony Burke said at the time that the changes would ensure someone participating in full-time study or training that improved their long-term job prospects “would not be putting their qualifications at risk”.

However Ms Maslen said that was what she felt Workforce Australia was doing to her.

“I feel penalized for choosing to study and to do a placement,” she said.

A white woman with blonde hair and red overalls looking at a computer screen
Rebekah Maslen says her experience with Workforce Australia has been poor.(ABC NewsNorman Hermant)

Ms Maslen said she had also been frustrated by experiences with her job provider.

“I often come back from my interviews feeling very frustrated and often in tears because I don’t understand how to use the system,” she said.

“I kind of feel like I’m being made to do all these things just so someone in an office can tick a box. I don’t really feel like that’s fair and it’s really quite demoralizing.”

Asked about mutual obligations requirements for students, the Department of Employment and Workplace Relations (DEWR) said people undertaking approved full-time courses shorter than 12 months, such as Ms Maslen, should not have job-search requirements.

“Providers have been instructed to reduce the minimum job search requirement to zero for these participants. The department’s Digital Services Contact Center can also remove the job search requirement for those participants,” a spokesperson said in a statement.

‘Designed to punish people’

The overall transition to Workforce Australia has been heavily criticized, with jobseekers and advocates voicing confusion and concern ahead of the launch.

Outside those affecting students, a raft of other issues has surfaced since the scheme launched. The ABC has heard reports of jobseekers:

  • Being recommended jobs based in states they do not live in and requiring qualifications they do not have
  • Traveling hundreds of kilometers for short face-to-face appointments with providers which they said could have been done remotely
  • Entering information on the Workforce Australia app or website which was not later accessible to providers
  • Having to complete skills seminars on things they already know and complete questionnaires assessing whether “zest” was a character strength of theirs

Jay Coonan, a spokesperson from the Antipoverty Centre, said jobseekers were not being treated as individuals and had been left to “figure out the system themselves”.

“It’s much the same [as jobactive]. It was never about making it more flexible for people, even though that’s what they marketed it as,” he said.

A white man with brown hair sitting at a computer
Jay Coonan says the rollout of Workforce Australia has been “a mess”.(ABC NewsNorman Hermant)

Mr Coonan said many of the issues to arise were foreseeable and things overall were “a mess”.

“There are people out there who are pretty much working full time … but are still forced to do mutual obligations simply because the system is designed to punish people who need help from the government.”

The DEWR spokesperson said the app and website were continuously reviewed to ensure they “meet the needs of users”, and jobseekers concerned by how their appointments were being managed could contact it via the National Customer Service line.

‘Everyone needs to be aligned’

Mr Burke last week flagged concern with the rollout and granted user experience had varied “wildly”.

A parliamentary committee has been set up to scrutinize the program, but will not report back until September 2023.

Sally Sinclair, CEO of the National Employment Services Association, the peak body for the contracted employment services sector, said she thought the rollout was going “relatively well” given the scale of the transition.

“Everybody is working very hard to make this the most positive experience possible for both the participants and employers … but it’s going to take a bit of time to build,” she said.

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Categories
US

CNBC’s Rick Santelli reacts to US jobs report

CNBC analyst Rick Santelli was beside himself on Friday as he reacted on the air to the latest federal data showing that American employers added 528,000 new jobs in July — more than double the anticipated number.

“It is a whopper!” Santelli told CNBC’s “Squawk Box” on Friday.

Economists expected that there would be an additional 250,000 jobs in July, prompting Santelli to say: “528,000! 528,000, basically double the expectations! And 528,000 is the best number since February when we were over 700,000, revisions to the last two months are 28,000.”

Maria Bartiromo, the Fox Business news anchor, was similarly stunned when the latest jobs figures were announced on Friday morning.

“Wow, that’s pretty incredible,” Bartiromo, a strident critic of the Biden administration, said live on the air as she was told about the numbers.

While the strong jobs market and the record low levels of unemployment persist, analysts said that it does not necessarily bode well for the Fed’s efforts to bring down sky-high levels of inflation.

The major indexes on Wall Street fell in response to the latest jobs report as investors gird for more aggressive interest rate hikes by the central bank.

“The tinder-box hot job market indicates that the Federal Reserve’s resolve to fight inflation is not bearing fruit yet,” Sung Won Sohn, an economics professor at Loyola Marymount University, told The Post.

Son cited labor shortages in key sectors of the economy including airlines, leisure and hospitality, and restaurants.

“The lethargic labor participation rate shows that workers are not yet worried about a recession and willing to wait for better opportunities,” Sohn said.

"It's a whopper" Santelli said upon learning that the US added 528,000 new jobs in July.
“It is a whopper,” Santelli said upon learning that the US added 528,000 new jobs in July.
Twitter/@SquawkCNBC

“The 5.2% wage gain from a year ago is not enough to entice them to get back to work.”

The Dow Jones Industrial Average was down 0.05% as of 10:23 am on Friday while the S&P 500 fell 0.08%. The Nasdaq shed 0.04%.

“This is a job market that just won’t quit,” Becky Frankiewicz, the president and chief commercial officer for ManpowerGroup, told The Post.

“The economic indicators are signaling caution, yet American employers are signaling confidence.”

Jeffrey Roach, the chief economist for LPL Financial based in Charlotte, told The Post: “The decline in unemployment and the participation rate will frustrate central bankers since a tighter labor market adds inflation risk to the economy.”

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