Businesses welcome Morrison’s youth employment plan

WITH employers constantly complaining we are spitting out a generation of Aussies who are not fit for work, the government’s youth employment plan could be a saviour.

Treasurer Scott Morrison and PM Malcolm Turnbull look pretty pleased with themselves after laying down their Budget ‘for jobs and growth’. Picture: Kym Smith

CRITICISE all you like but according to business leaders Scott Morrison’s youth employment plan is just what they, and young people, need.

Announcing his new jobs offer, the Treasurer said he was addressing problems of both young unemployed Australians and the businesses who won’t have them.

By offering 120,000 young job seekers pre-employment skills training, paid work experience placements, and providing businesses incentives to employ those kids after they complete their three-month internships and ween them off the dole, Morrison reckons he’s doing everyone a favour.

“Australian businesses, especially small businesses, have told me they want to give young people a go, but we need to do more to get young people ready for a job, so businesses don’t carry all the risk and cost,” he said when he announced the program in last night’s Budget.

“And it’s a two-way street. Young people have told me how they need people to get alongside them to help them to develop the confidence, skills, attitudes and behaviours that are expected by employers so they can get a job and stay in a job, because that is what they want.”

And if you talk to employers, as Australian Chamber of Commerce and Industry director Jenny Lambert does in her position, they’ll tell you just what Mr Morrison says they’ve told him.

“The basket of skills young people with very little if not any experience is tricky for employers,” she said.

“If they’re unemployed for a long while, their ability to work with others in a team and to fit in a business, even basic things like turning up on time and basically being loyal to the business, these are the issues employers are giving us a lot of feedback on.

“We’re certainly happy that there is a focus on employability skills.”

News.com.au has spoken to employers recently who have been turned off employing young people at all, identifying a non-work ready generation with “no skills at all”.

As well as making young people more employable, the internship-focused program takes away some risks for businesses looking to expand.

From left to right: Pam Manzi, owner of La Piccola Villa Cafe in Penrith, trains work experience student, Faith Alanson, 17 year old Year 12 student at Wycliffe Christian School in Warrimoo.

“There are so many small businesses out there who would dearly love to take an extra person on, but they’re not sure whether that person will work out and they’re not sure if they invest in a new employee that they’ll give them value,” Ms Lambert says.

“This is about reducing that risk and encouraging particularly small business. If they increase their staff from five to six, or eight to nine, that’s a big investment. If they can start the person off in a less risky way, they might be encouraged to think, yes I can serve more customers, or whatever it may be.”

Employers participating in the program receive an upfront payment of $1000, while the intern works for them for 15 — 25 hours per work. The intern is paid $200 each week on top of their Newstart allowance. If the internship ends up leading to employment, the government will subside their wage up to $10,000, saving the employer even more.

While the program encourages employment, there has been some disappointment over the fact that it doesn’t create jobs for young people.

‘Increasing employability’: The Budget papers outline what’s in it for young people.

‘Gaining experience’: Part of the government’s sell in its Budget papers.

Australian Youth Affairs Coalition chair Katie Acheson said the program was “a good start” but didn’t go far enough.

“It’s great getting young people experience in what it’s like to have a job, but sadly it doesn’t create new jobs,” she told ABC radio.

“It’s much better than work for the dole. But for those in poverty their entire life, six weeks isn’t going to be enough to teach you how to speak up in work for example — it will need more.”

Another argument that has cropped up against the scheme is that during the internship phase of the program, the extra money participants are paid breaks down to about $4 per hour.

“It’s below the minimum wage, and that’s why it’s not a real job,” Ms Acheson says.

But according to Ms Lambert, it’s a tired argument.

She says while the program isn’t perfect — “it won’t be for everybody” — the program certainly causes very little harm.

“This is always the argument about why you had work for the dole — at the end of the day the reality here is that young people need experience to get a job, and they get caught in that cycle of not being able to get that experience,” she says.

“At the end of the day, the worst thing that can happen is the person has three months’ work experience and received an extra $200 a week on top of their allowance. There’s very little harm here, and they’re closer to being ready to take on that next job.”

The program will cost $751.7 million over four years, providing up to 30,000 work experience spots a year.

It comes at the expense of other youth employment programs like Work for the Dole.

Chloe Wellington a Lourdes Hill graduate is squashing antiquated gender roles, taking on an electrical apprenticeship this year. Picture: Patria Jannides