EMPLOYMENT PARTICIPATION RATE

In reply to Mr GRIFFITHS (Goyder) (7 October 2010) (Estimates Committee A).

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change): I have been advised the following:

The employment participation rate quoted by the Economic Development Board (EDB) report is the civilian population aged 15-64 in work as a proportion of the 15-64 age group. The ABS definition for participation rate differs from the EDB's approach to this workforce indicator in that the ABS defined the participation rate as the civilian population, aged 15 or above, that are working or actively seeking work. As the ABS counts unemployed persons, and given that the civilian population cohorts are different for each definition it follows that there are different percentage rates. The population estimates used by the EDB are sourced from Planning SA's population projections.

The EDB's approach recognises that the workforce is at its most productive between the ages of 15 and 64 and recommends strategies to increase the participation rate for the majority of the workforce, recognising that people begin the retire from age 65 onwards.

In 2010-11 the new framework for the South Australia Works initiative will be implemented to raise workforce participation rate for those who are disadvantaged in the labour market, and increase foundation skills levels, particularly for literacy and numeracy.

The principal objective is to contribute to an increase in workforce participation, which is one of the key policy objectives of the government. The primary role is to identify and respond to the skills development needs of each state government region. Location-specific services and customised programs were designed to respond to the needs of the individual, local industry and employers and local labour markets. There will be a greater focus on increasing foundation skills, especially literacy and numeracy. Over 21,580 people will benefit from SA Works programs, with at least 9,390 participating in work programs and 4,900 gaining a job.

A new workforce participation directorate will be formed, incorporating the employment programs and Aboriginal policy coordination directorates. The restructuring will increase our capacity to develop strategic partnerships for key workforce participation agendas, particularly with the Federal Government, and strengthen the front-line service delivery of SA Works in each of the state's regions, with a particular focus on increasing opportunities for Aboriginal people.

In addition, the Government will commence implementation of the Jobs Strategy commitment to allocate an additional 100,000 training places over six years and increase participation in vocation education and training (VET) from 10.9 per cent to 12.0 per cent of the working age population.