Inflation pushing price of looking for a job beyond reach for many Australians

The rising cost of living is making the price of looking for a new job impossible for many Aussies. See how.

A growing number of Australians are now too poor to work as inflationary pressures push the price of looking for a job beyond reach.

The cost of mobile phones and the internet – essential for communicating with prospective employers – has skyrocketed and, for the most disadvantaged jobseekers, finding work has become an “impossible dream’’, says Nicole Dwyer, chief executive of not-for-profit employment services provider Workskil Australia.

Rising costs of fuel and public transport make it difficult for job seekers to get to interviews and very few can afford suitable clothes to make a good impression with recruiters, Dwyer says.

Workskil Australia chief executive Nicole Dwyer.

“Jobseekers are under the worst financial stress I’ve seen in 20 years,” she says.

“They aren’t eating three square meals a day, they’re having to let go of their cars, they’re struggling to maintain their mobile phones, and their rent is going up or they’re losing their homes.

“This extreme level of financial stress is pushing the most vulnerable cohort of jobseekers to the point of no return.’’

MAKING IT TO PAYDAY

Since July, the level of assistance provided by Workskil to its 50,000 registered jobseekers has increased by more than a third, with almost $310,000 spent helping people with food, transport, clothing, mobile phones and internet services in December alone.

“We’re not talking about luxury items here but basic life needs,” Dwyer says.

“In providing this targeted support, we hope to alleviate some of the financial stress facing jobseekers so they are better prepared to secure work and begin to turn their life around.’’

For those who find employment, the battle is far from over – many will lose their jobs within the first month because they cannot afford travel to and from work or the uniforms required for the role, Dwyer says.

“A lot of jobseekers find it hard just to get through their first week and have the money to pack lunches or buy the uniform or different shoes or boots or whatever it is they require,” she says.

“Those first four weeks (of employment) are the most common time that someone who moves off welfare to work will fall out of work because they can’t last until their first pay.’’

LOST AND STRUGGLING

Kris Koch, 43, was determined to break a 20-year unemployment cycle to care for his beloved dog, blue heeler Buddy.

But with rising living costs, the Adelaide man had to save six months just to afford a pair of shoes and relied on Workskil to help meet various job seeking expenses, including phone and data plans, bus tickets to attend job interviews, and suitable work attire.

“I often faced the choice of buying food for Buddy and myself or paying a bill,” Koch says.

“Life was beyond a struggle and I was lost.”

Kris Koch and Buddy.

Since securing a part-time maintenance and landscaping role, Koch is now hopeful for the future.

“Buddy and I are in a much better place for our wellbeing,” he says.

“However, we’re not on easy street by any means. I’d really like to build up my hours and also work helping other people who are struggling in life.

“By boosting my income, I’m hoping I won’t always have to go without the things many people take for granted.”

NO ROOM TO WRIGGLE

Australians receiving the JobSeeker payment must make do on $48 a day, well below the poverty line and representing just 42 per cent of the minimum wage.

Anglicare financial counsellor Scott Boyle sees many welfare recipients that spend more than 90 per cent of their JobSeeker payment on rent, leaving next to nothing for other life essentials.

“People that are on Centrelink support are facing the same increase in costs that all of us are being hit with but they just don’t have that wriggle room and there’s no capacity to find the extra money to cover it,” he says.

Despite a national shortage of workers, Boyle says the most disadvantaged of jobseekers often struggle with poor mental or physical health, lack secure accommodation and have limited family support, making it even more difficult to find suitable employment.

He urges those struggling to pay the costs associated with job seeking, or make ends meet in general, to contact the National Debt Hotline [phone]) or their local charities or community hubs for help.

PRICE OF JOB HUNTING

• Mobile phone: $30-70 per month

• Internet: $50-70 per month

• Clothes for job interview: Upwards from $100

• Travel to interview: $50 per month for fuel (plus vehicle registration and maintenance costs) or $20-30 per week for public transport

Source: Nicole Dwyer, Workskil Australia

Originally published as Inflation pushing price of looking for a job beyond reach for many Australians