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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2016-10-19 Daily Xml
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Youth Jobs PaTH

The Hon. T.T. NGO (15:57): There were many disappointing elements of the federal budget delivered by the Turnbull government before this year's election. However, I want to speak about one of the few positives in the budget: the Youth Jobs Prepare, Trial, Hire (PaTH) is a program which, we are told, will focus on alleviating youth unemployment.

The state government is also committed to boosting employment opportunities. The Treasurer, Tom Koutsantonis, recently announced a job creation grant in this year's state budget. This grant package offers small and medium-sized South Australian businesses up to $10,000 over two years for each full-time equivalent job created. Similarly, the Youth Jobs scheme is intended to give young jobseekers an opportunity to join the workforce, many for the first time in their lives.

A primary part of the program places eligible jobseekers in a paid internship for four to 12 weeks. Employers will be paid a sum of $1,000 to take on these young jobseekers. When the internship ends, employers who employ the young jobseekers are given a yearly wage subsidy of $6,500 to $10,000, depending on that person's job readiness. How job readiness will be determined remains unclear at this point.

My understanding is that this program is voluntary. The majority of jobseekers, whether they are early school leavers or graduates, are very eager to find employment. I think this program will be attractive to them as it provides an opportunity to pursue work experience and build on their skill set. Equally, employers who are genuinely looking to expand their business and hire jobseekers, but who would otherwise be reluctant about carrying all the risks or costs, have practical incentives to provide on-the-job training and potential employment to young people.

We have heard time and time again that our youth are caught in a frustrating cycle. Circumstances are getting tougher in the job market. Many young jobseekers are faced with a seemingly impossible hurdle in trying to find work without much on-the-job experience or formal qualifications.

Youth unemployment is a systemic problem that requires structural reform across all industry and educational sectors. It is easy for people with employment to be armchair critics but we need to look at the positives and give things a go. This program is not a silver bullet to the challenges of youth unemployment but it is one of many different strategies that may help. The Youth Jobs PaTH Program has been met with support by the welfare sector in Australia despite the criticism of the trade union movement. Mission Australia CEO Catherine Yeomans stated:

Any program that helps them overcome barriers, gives them relevant work experience and actually puts them in workplaces where there is some potential for a job is a brilliant outcome.

As someone who was unemployed and has worked with unemployed youth, I could not agree more with that statement. In my view, the scheme will give unemployed youth hope for the future and a reason to get out of bed each morning. This program will boost the confidence of young jobseekers, develop their employability skills and prepare them for the workplace. The aim, after all, is for them to secure and maintain a job.

A positive flow-on effect is that youths can build on the experience to find jobs more easily in the future. If we want to help young people get into the job market we need to provide them with these kinds of initiatives. My only caveat is that the federal government must monitor the program adequately to ensure that the program meets its intended purpose, and not allow it to be misused by employers simply wanting to hire cheaper labour. I endorse this program and I am hopeful that it will create more job opportunities for unemployed youth.

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