New opportunities for the long term unemployed in South Australia

Minister for Employment Participation and Child Care Kate Ellis met with CEOs of South Australian employment services today to discuss new initiatives in the 2011-12 Budget that will assist the very long term unemployed.

There are more than 27,000 South Australians who have been unemployed for more than two years and are being assisted to find a job by the employment services that these CEOs run.

Ms Ellis said that as the nation heads towards a projected unemployment rate of 4.5 per cent, South Australia is faced with a unique chance to transform the lives of locally unemployed people.

“We know that people who have been unemployed for a long period of time have difficulty finding full time employment because they often don’t have the necessary skills and work experience employers are looking for.

“Once a job seeker has been unemployed for one year they have a 54 per cent chance of being unemployed for at least one more year after that.

“The current economic environment, with a low unemployment rate and high demand for workers, provides new opportunities for very long term unemployed people to find work,” Ms Ellis said.

Of all unemployed people in South Australia registered with Job Services Australia some 35 per cent have been unemployed for more than 2 years, which is significantly higher than the national average. 

These job seekers often face multiple barriers to employment such as suffering from a mental illness or homelessness.

Through the 2011-12 Budget the Australian Government is investing $227.9 million in measures to specifically target the very long term unemployed.

Wage subsidies of around $6000 will be paid to employers who take on and retain people who have been unemployed for more than two years.

These subsidies will be paid for at least six months but may be available for longer based on the particular needs of that job seeker. Both private businesses and social enterprises will be able to take advantage of this funding.

Ms Ellis said that wage subsidies that are targeted at the most disadvantaged job seekers have proven to be effective both here and overseas.

“Over the next three-and–a-half years we expect to see some 35,000 very long term unemployed job seekers placed into employment using this subsidy,” Ms Ellis said.

The Australian Government will invest over $8.5 billion in employment services over the next 4 years.

reff:australia.gov.au