Release type: Media Release

Date:

$4 billion new employment services – Job Services Australia

The Minister for Employment Participation, Mr Brendan O’Connor today announced overall results for the tender of the Rudd Government’s $4 billion new employment services to be namedJob Services Australia: People, Skills and Jobs.Providers for Job Services Australia will begin operation from July 1. There will be a 12 month transition period for job seekers to Job Services Australia providers.The independent competitive tender was run by the Department of Education, Employment and Workplace Relations following an extensive consultation period. It has been signed off by an external probity advisor.Job Services Australia folds seven separate employment services programs into a ‘one-stop-shop’ that provides job seekers with a more personalised service.As Australia faces the impact of a global recession, we need to ensure job seekers are able to access employment services that will help them gain new skills and be job ready.There will be 116 contracts servicing job seekers across Australia. The 116 contracts comprise individual organisations or groups of organisations totalling 141 providers. They will be supported by at least 48 sub contractors.There will be more than 2000 Job Services Australia sites across the nation, an increase from 1800 sites under the current system.Other tender results include:

  • 72 per cent ofJob Services Australiacontractors are existing employment service providers. They will deliver 93 per cent of services.
  • 74 organisations delivering specialist services to help job seekers with special needs. This includes young people, the homeless, those with a mental illness and people from non-English speaking background.
  • 27 Indigenous organisations delivering employment services.
  • 88 not-for-profit contracts and 28 private sector contracts. A number of private sector contracts will see not-for-profit providers delivering services. This means the employment services share between not-for-profit and private sector providers will be similar to the current system.
  • There will be two new overseas entrants which deliver less than 2 per cent of employment services.

Providers, employers and job seekers told the Government during nine months of consultation that the old system, Job Network, was confusing, fragmented and laden with red tape.Under the existing Job Network there was no provision to extend 95 per cent of existing contracts beyond 30 June 2009.The Government believes the new Job Services Australia will deliver a better, more personalised service that responds to all economic conditions.Job seekers will receive an individual Employment Pathway Plan, which can include literacy and numeracy programs, work experience, help with resumes, trade equipment and training.The new services will have stronger links to the Government’s $2 billion Productivity Places Program.The Productivity Places Program consists of 711 000 training places of which 319 000 places are for job seekers and 20 000 are identified for recently retrenched workers.During these difficult economic times it is critical that job seekers remain connected to the labour market and access training so we enhance the nation’s skills base for when our economy recovers.We recognise that some organisations will be unsuccessful in this tender and will need help to readjust. They will be able to apply to a $3.5 million Business Adjustment Fund to help them realign their organisation.The Government has provided funding to enable service provider employees affected by the new tender outcomes to register with the National Employment Services Association if they would like to work in this area. The new register will also be a useful tool for successful tenderers to find new staff.Job seekers will receive a letter from April informing them of changes.If job seekers have any queries they can call the customer service hotline 1800 805 260.If providers have any queries they can call 1300 733 514.DEEWR will begin contacting agencies from tomorrow.A full list of successful tenderers by Employment Service Areas will be available at www.workplace.gov.au from 2pm on Thursday, April 2.