Private companies paid up to $12k to find jobseekers work, but COVID-19 exposes a problem with the model

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ANALYSIS: Private companies paid up to $12k to find jobseekers work, but COVID-19 exposes a problem with the model

From June until November, the admin fee paid to providers has increased from $250 to $391 for each person signed up.

Stories have emerged of employment services using high-pressure tactics to persuade jobseekers to sign up and the increased importance of admin fees helps explain why. One only has to look at how much they earn from outcome payments when the unemployed on their books do land jobs. Those in stream A are those with high skills who have been recently employed, the so-called good bets.

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These companies are a rort... how many people have they actually found work for? It'll be a lot less then they've been paid for.

Wow, so we have only just figured out how dishonest this whole system is. Years ago I was unemployed having come out of scientific role and the only advice the provider assigned to me could give was to “get a forklift licence” I eventually found work myself.

geoffrey_payne The model never worked. Another failed Liberal Government privatisation model that has been wasting billions upon billions of taxpayer dollars for no benefit. auspol

They only do that if they can milk money off the gov for managing that individual. If they you are category C you're in the too hard basket. The system is flawed and hundreds of millions are milked from the tax payer to achieve very little.

In an age of online job applications, why do we need 'job service providers' at all? Their function seems to be to tick boxes, make life hell for the unemployed, and rake in millions of $$ from the government for doing nothing.

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