The New Employment Services Model will create a better service for job seekers, employers and providers. It will replace the jobactive program from 2022. The new model is being trialled in two regions from July 2019
For more information on the funding allocated to employment services, see the 2020-21 Budget measures.
New Employment Service Model Proposed Timeline.
For job seekers, the new model will provide:
- A digital platform and online support that will help you find a job.
- More flexibility to meet mutual obligation requirements.
- Access to extra support when needed.
Digital First is a new digital platform that will help job seekers who are digitally capable and job-ready to:
- Self-manage their job search online.
- Access tools that will help with finding, choosing and applying for jobs.
- Seek advice from the Contact Centre via phone or email.
- Complete and report mutual obligations online.
- Access assistance such as online jobs board, job matching and training modules.
As well as using digital services, job seekers who need extra support may be able to receive face-to-face support from an employment services or training provider under Digital Plus.
This may include:
- Training to help use the digital service;
- Training for skills required for specific employment opportunities;
- Funding to pay for a wage subsidy, tools or a licence.
Job seekers may also engage with any other complementary programs they are eligible for, such as PaTH Internships or Career Transition Assistance.
The most disadvantaged job seekers will receive Enhanced Services delivered through employment services providers.
Enhanced Services Providers will:
- Deliver an individualised service to help prepare and support job seekers into work.
- Help address a job seeker’s barriers to work through services such as:
- Career guidance
- Vocational training
- Assistance in accessing non-vocational services such as counselling, medical services, housing support or financial advice.
- Work experience, job placements and post-placement support.
The new model will keep the principle of mutual obligations:
- It will introduce a points-based system that requires job seekers to take more responsibility for their pathway to employment.
- Job seekers may have to undertake activities earlier and more often but will have more options and choice in how to meet their obligations.
- The Targeted Compliance Framework will remain in place, to ensure consequences for those who do not to meet their requirements.
In the new model, providers will be focused on the job seekers requiring greater levels of support to find employment.
Employment Services Providers will provide Enhanced Services through a contractual licence. Some regions will have specialist licences available. The number of licences in each region will be capped to ensure market stability.
Providers will be issued a licence to deliver services.
Providers performance will be regularly reviewed and include feedback from employers, job seekers and local stakeholders.
Low performing Providers will not have their licences renewed. They will exit the market, providing a strong incentive to achieve high performance.
A new payment structure will be introduced for the new model which may introduce:
- Higher up-front payments to support investment in early intervention.
- Outcome payments will continue to be used to reward moving job seekers into employment and will be the primary performance measure.
- Progress payments will recognise the completion of milestones towards employment, while bonuses will be available for achieving sustainable outcomes for long-term unemployed job seekers.
More information about the payments structure being tested during the Trial is available in the New Employment Services Trial - Enhanced Services Payments Model factsheet.
The digital platform will provide a better service to employers through:
- The ability to filter and search for candidates.
- The opportunity to offer work experience programs.
- Better post placement support.
- Targeted wage subsidies through Enhanced Services.
In response to the COVID-19 pandemic, on 16 April 2020, Digital Servicing in the New Employment Services Trial regions changed. For more information on these changes, you can refer to the participation fact sheets, or visit the Online Employment Services webpage.
Consultation on the new system
In March 2019, the Australian Government announced that the New Employment Services Model would replace jobactive in July 2022, featuring a licensing system.
This licensing system will reform the traditional approach to procuring employment services providers and make it more flexible.
The new model was informed by extensive collaboration with:
- National and internal research; and
- Intensive user centred design with job seekers, employers and employment service providers
Consultation and user-design is continuing during the New Employment Services Trial and during developing the final model.