House debates

Monday, 22 March 2021

Private Members' Business

COVID-19: Employment

12:58 pm

Photo of Terry YoungTerry Young (Longman, Liberal National Party) Share this | Hansard source

I move:

The motion was unavailable at the time of publishing.

Last week we had some great news on employment figures. The national unemployment rate dropped from 6.4 per cent in January to 5.8 per cent in February. This is an outstanding result and it's no exaggeration to say it exceeded our expectations. Importantly, more than 40 per cent of the 88,700 new jobs created in that period went to young people. The Morrison government's job creation initiatives through the COVID pandemic have worked and they continue to work. But there is still one area that, historically, has not been good enough, and that is getting young people into work.

Youth unemployment in Australia is more than double the national unemployment rate, at 12.9 per cent. It's been somewhat encouraging to see this figure decrease in the last month, down by 1.1 per cent. In my home state of Queensland, the youth unemployment figure is even more concerning, at 15.1 per cent. Only South Australia's is higher.

In the Moreton Bay-North statistical area, which includes my electorate of Longman, the figure has historically been higher than state average. But why? Why is this the case, even before the pandemic struck? Why are there so many young people classed as unemployed compared with the national average? Firstly, young people often have little or no labour market experience and frequently lack relevant skills. Secondly, businesses face higher costs of investment and lower costs of termination when they're employing young workers. Younger people tend to move between joblessness, training and working, and are more likely to enter temporary and insecure employment. Youth employment has also been hard hit by COVID-19, as young people are overrepresented in industries that have been heavily affected by health restrictions, such as accommodation, food services, the arts and recreation.

This is why the Morrison government is focusing on initiatives that aim to get young people across the country, including in my electorate, into a job. We are committed to supporting young Australians back into jobs or training through the JobMaker hiring credit, the boosting apprenticeship commencements wage subsidy and the JobTrainer fund. We also want to ensure that all Australians, particularly young Australians, have every opportunity to succeed as we bounce back from the global pandemic and recession.

The $1 billion JobTrainer fund will provide around 300,000 additional free or low-fee training places to help young people, including school leavers and jobseekers, gain the skills they need to get a job. Crucially, the program targets training for jobs that are in demand. Participants can choose from a range of accredited diplomas, certificates and short courses in areas like health, aged and disability care; IT; and trades. So, if your age is between 17 and 24 and looking for work or looking for a career change, you may be able to study a free or low-fee course through JobTrainer.

Additionally, the Morrison government's $4 billion JobMaker hiring credit provides an incentive for businesses to employ young jobseekers who are between 16 and 35 years of age. The credit is available to employers who hire people in that age bracket who are receiving JobSeeker payments. The employer is paid at a rate of $200 per week for an employee under 30 years old, and at $100 for those between 30 and 35 years old. We're also investing heavily in employment services targeted at helping young Australians become job ready and to obtain and stay in a job. This includes $21.9 million to connect more young people to youth specialist employment services and targeted support like the Transition to Work service. Under this program, young people can get access to a Transition to Work provider and receive tailored, vocational and non-vocational support and advice.

There is also the Youth Jobs PaTH program, which helps young people gain the skills and work experience they need to obtain and keep a job. This includes a youth bonus wage subsidy of up to $10,000 to support the employment of young people. More than 116,000 young people have participated in at least one element of PaTH, and, of those, more than 62 per cent have received a job placement, which is great news.

The government is also encouraging employers to take on more apprentices and trainees through the boosting apprenticeships commencement wage subsidy. These entry-level positions are a key pathway to employment for young people. The wage subsidy will also help prevent any future skill shortage. Just this month we lifted the cap on places under this program and extended it by a full 12 months, given its massive success to date.

The youth employment rate in my electorate and across the country is simply not good enough. The other thing I'd like to implore young people to consider is fruit picking. We have a crisis in many agricultural areas, including my area. In my electorate of Longman, we are desperate for strawberry-pickers and berry-pickers, so please have a look at that. We've seen from the most recent unemployment data that this is working.

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