Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

Employment Policy Convention, 1964 (No. 122) - Australia (Ratification: 1969)

Effective employment policy measures. The Committee notes the detailed information provided by the Government and the observations of the Australian Council of Trade Unions (ACTU) received in September 2014. The Government indicates that, against the backdrop of a relatively subdued international environment and a below trend domestic economic growth, labour market conditions in Australia have been soft over the three years from June 2011 to June 2014. Following a general election in September 2013, the new Government has committed to improving productivity by boosting workforce participation. The Committee notes that employment growth increased by 365,400 persons over the three years to 11,576,900 in June 2014, an annual average rate of 1.1 per cent, which is well below the long-term trend rate of 2.0 per cent. In addition, the level of unemployment in Australia increased by 163,000 persons over the period to stand at 745,200. The unemployment rate increased from 4.9 per cent in June 2011 to 6.0 per cent in June 2014. The Government states that the level of long-term unemployment (persons who have been unemployed for 52 weeks or longer) increased significantly in recent years, up by 60,500 between June 2011 and June 2014 to stand at 172,400, its highest level since November 1999. Measures were included in Job Services Australia (JSA) 2012–15 to assist the very unemployed find employment. In addition, the Government’s 2014–15 Budget initiatives are specifically designed to address Australia’s unemployment, and those groups particularly impacted. In its observations, the ACTU has identified precarious work as one of the most pressing issues facing workers in Australia today. The ACTU states that 40 per cent of all workers in Australia work under non-standard work arrangements, such as casual, fixed term, contracting and labour hire arrangements. A remarkable 25 per cent of all employees work on a casual basis. While the ACTU recognizes that these forms of employment have their legitimate and genuine purposes, they are increasingly used, and abused, so as to avoid the responsibilities associated with a permanent ongoing employment relationship. The ACTU believes that the obligation to pursue, as a major goal, an active policy to promote full, productive and freely chosen employment in accordance with Article 1 of the Convention requires the Government to take positive steps to address the issue of precarious work. Keeping in mind the concerns raised by the ACTU, the Committee requests the Government to specify how, pursuant to Article 2 of the Convention, it keeps under review the measures and policies adopted according to the results achieved in pursuit of the objectives of full, productive and freely chosen employment, specified in Article 1. The Committee also invites the Government to include information on the results of the measures adopted in order to address long-term unemployment and, underemployment, including information on the number of programme beneficiaries obtaining lasting employment.

Youth employment. The Committee notes that the youth (persons aged 15–24 years) labour market conditions have deteriorated over the three years to June 2014, with employment falling by 37,400 (or 2.0 per cent), while the unemployment rate for this cohort has increased from 11.2 per cent in June 2011 to 13.6 per cent in June 2014. As part of the Budget 2014–15, from 1 January 2015 young people aged under 30 years who have a full capacity to work will be required to either learn or earn, through tighter eligibility criteria for newstart and youth allowance. The Green Army programme will also provide environmental based work experience opportunities for up to 15,000 young people aged 17–24. Young jobseekers can join Green Army as an alternative to Work for the Dole. The Committee notes the observations of the ACTU indicating that the Green Army programme and the Work for the Dole programme suffer many of the same flaws. There is no guarantee of ongoing work for participants and no obligation to use commonwealth funding to assist disadvantaged jobseekers to find employment. There is also no requirement for job service providers to provide participants with structured on-the-job training, mentoring or information about other employment services. Keeping in mind the concerns raised by the ACTU, the Committee requests the Government to provide detailed information on the impact of the measures in Budget 2014–15 taken to encourage and support employment levels of young people and reduce youth unemployment.

The Committee is raising other matters in a request addressed directly to the Government.