Employment & Community Participation

Employment & Community Participation P articipating in employment is a foundation of social inclusion, recognised by governments across Australia as creating opportunities for independence and personal fulfillment. Rapid increases in unemployment, and particularly in long term unemployment that are associated with the Global Economic Crisis now pose a major challenge to socially Multiple Disadvantage equitable labour market outcomes in Queensland. While most Queenslanders will emerge from the current economic downturn relatively unscathed, as of October 2009 Queensland has the highest unemployment rate of any state in Australia at 6.0% or 142,000 1. The federal economic stimulus package and other state based efforts have been successful in engaging some groups at risk, but it remains likely that unemployment will rise to 7.5% or 170, 500 people in Queensland by mid 2010 2. These increases in unemployment will more than double the number of Queenslanders that are socially excluded, and when considered with the much larger group at risk of exclusion, will make up some 20 per cent of the population by June 2010 3. If it is left unchecked, the cost of increasing unemployment and exclusion in Queensland will be more than $3.6 billion per annum - highlighting that, as governments invest in minimising the impact and extent of increasing unemployment, the most socially inclusive strategies will also be the most sound economically. Some Queenslanders are far more likely to suffer poverty and social exclusion. And the effects are multiplied when individuals and families belong to more than one group. QCOSS recognises the serious disadvantage faced by: Aboriginal and Torres Strait Islander communities People in rural and remote communities Culturally and linguistically diverse communities People with a disability Young people Older people Lesbian, Gay, Bisexual and Transgender communities Based on the estimates of excluded and at risk Queenslanders for 2010 the following cost/ benefit approximations can be made: Moving the excluded group one income quintile Moving the excluded group two income quintiles Moving the at risk group, through employment or more paid hours, one income quintile Moving the at risk group, through employment or more paid hours, two income quintiles $2.3 Billion $5.06 Billion $3.55 Billion $5.92 Billion

Key Issues Long term unemployment in Queensland is predicted to increase from 18, 500 in 2008-09 to anything between 42, 500 and 44, 500 by June 2010 and patterns from previous recessions suggest this will not decrease quickly. Similarly, if the situation of past recessions is followed, youth, mature aged and non-standard employees will be the worst impacted 4. Many long term unemployed Queenslanders face multiple barriers to participation, including a lack of relevant skills, a lack of access to childcare, inadequate social and physical infrastructure and negative employer attitudes 5. According to the 2008 ABS Jobseeker Survey, the main difficulty in finding work for the long term unemployed is 'own ill-health or disability' (32%) followed by 'too far to travel/transport problems' and 'lacked necessary skills or education' (each 13%) 6. QCOSS stakeholders report this group has been adversely affected by the influx of the newly unemployed in the competition for increasingly limited services and employment opportunities 7. Total unemployment in Queensland has reached 142, 000 or 6.0% in October 2009, and may still increase to previous estimates of 170, 000 or 7.5 % by June 2010. However many groups and communities in Queensland continue to experience unemployment at higher rates 8. These groups include: Young people 18.6% recorded in August 2009 9 Older People 24% of unemployed over 45 in Australian ABS stats for July 2008 10 Aboriginal and Torres Strait Islander people 23.5% 11 People with a Disability rates vary with the type of disability 12 Carers 7.2% 13 Increasing unemployment could blow the numbers of socially excluded and at risk people in Queensland out to 20 per cent of the population, or more than 740 000 people by June 2010. Failure to address ingrained unemployment and social exclusion has ongoing and increasing costs for society. In other words, dealing with these issues as they arise becomes a prudent financial (investment) decision for Governments. 14 John Mangan, Report 2009 Unemployment is not even across Queensland locations and is significantly higher in several regions. The Far North is by far the worst performing regional economy in the country, with the highest unemployment and highest unemployment growth in Australia. As of August 2009, Cairns, Wide Bay/Burnett and Gympie regions all have levels of unemployment well above predictions 15. There is also a worrying trend observed among young families who often move to these regions in search of affordable housing but are then trapped without employment and must commute for many hours a day for work, increasing economic stress and social isolation from the community. Jobless households. More than 130,000 Queensland children aged less than 15 years are living in a home without a working parent in 2008-09. Recent Australian studies have linked family joblessness to the incidence of truancy, youth justice issues, poor health, substance abuse, family violence and ultimately to intergenerational social disadvantage. According to Professor Tony Vinson, Faculty of Education and Social Work, University of Sydney, [i]n addition to the impact of joblessness on the wellbeing of individuals and families, joblessness represents a substantial waste of national economic potential. Persistent unemployment can occasion the loss of work skills, experience and self-confidence. 16 Access to transport is a significant barrier to workforce participation. Past ABS data reveals inadequate access to transport is reported as the main difficulty in finding work by 2 P age Employment and Community Participation

jobseekers consistently at rates of more than 10 per cent. This is especially pertinent in Queensland s rural and remote regions. There are no industry specific qualifications for employment consultants and there is an increasing need for the state to ensure people working with vulnerable people have skills and expertise to engage with our most vulnerable citizens. While Australia has a sophisticated income support system, it is extremely complex to navigate. The increased integration of welfare and work also delivers the integration of government and private/not for profit service provision which adds to the maze of systems the unemployed need to understand. The intention is to facilitate individual s participation in employment and skill development, but the reality is that our most vulnerable see the complexities as barriers and often give up and fall out of welfare. A shift in mindset is needed so that investment in social infrastructure is not seen as unproductive in these sorts of crises health and community services is one of largest and fastest growing industries in this state. The community services workforce has increased by 22.6% from 1999 to 2004 double that of the average of all occupations (AIHW, Australia s Welfare, 2005). Any investment in the sector is well spent both in the short term, but also in continuing training and employment opportunities. It also supports people who otherwise will be hard hit which, as the evidence shows, is a long term cost to the state and its economy. Key Issues for Groups at Risk Indigenous Australians experience much higher levels of unemployment than non- Indigenous Australians. At the time of the last Census around 48 per cent of the Indigenous workforce-aged population was in employment. This compares to 72 per cent for other Australians a gap of 24 percent 17. Aboriginal and Torres Strait Islander people are more likely to experience multiple disadvantage, greatly impacting on their ability to gain employment such as unacceptable levels of disadvantage in living standards, education, health; higher rates than the non- Indigenous population of mental illness and chronic disease; and consistently below national average literacy and numeracy results 18. The economic downturn means reduced employment opportunities for young people, especially those with a disability or from disadvantaged backgrounds. Young people continue to experience unemployment in Queensland at significantly higher rates with 18.6% recorded in August 2009 and there is a lot of concern among community workers for young people after Job Placement, Employment and Training (JPET) program concluded in June 2009 (CHECK) 19. The effects of unemployment on young people include disengagement, exclusion, anger, and no longer seeing the point of engaging, training or trying. People with a disability are stagnating in the system, and are overrepresented among the long term unemployed 20, especially for those who fail to recognise their medical condition such as those with a mental health. This situation is exacerbated by huge inequalities in the support that is available for people with a disability who might have work cover or similar insurance schemes and those who do not. Employment and Community Participation Page 3

Carers continue to face additional barriers to participating in the workforce. For example where respite might be inadequate or lacking, the time away from work that carers may be forced to take can impact on job security. After school care is not appropriate for children with complex needs and impacts on already disadvantaged parents ability to maintain employment. The economic downturn has impacted heavily on CALD job seekers 21. Problems experienced by Culturally and Linguistically Diverse communities prior to the downturn persist, and in many cases have worsened with anecdotal reports that employers are increasingly selective with a growing pool of applicants where for instance English is limited. Job network agencies often lack cultural competency skills which in turn lead to inappropriate work placements for CALD Queenslanders. Skills recognition programs continue to be problematic with overseas qualifications and experience not recognised and their costs prohibitive for newly arrived Queenslanders. QCOSS stakeholders also report increasing needs for 457 Visa holders across the state. This group is often isolated from services in rural communities and economic pressures now add to their already vulnerable position. Every migrant group has seen its employment profile diminished by the recession. This includes the very well qualified and high SES groups with normally very strong employment profiles - from Canada, the USA, South Africa, Western Europe and Asia. This sort of profiling shows us how much we owe to these skilled migrants who seem to take a lot of the risks in terms of generating economic growth and jobs for others, but have obtained little net return from the stimulus. Australian Development Strategies (2009). Recognising Progress QCOSS commends the Queensland Government for acting quickly to combat the economic downturn and continuing to recognise there are communities and people who are more likely to fall into social isolation or poverty because they can t find work or access the different services they need to improve their present situations. This has been recognised in policy through: A target to create 100,000 new jobs to guide Queensland through the global financial crisis with strategies that include developing innovative job creation programs and supporting green jobs. The Skilling Queenslanders for Work initiative that recognises some groups of Queenslanders have substantial barriers preventing them from getting into the workforce and aims to give these jobseekers customised employment and training assistance to meet their individual needs. The inclusion of QCOSS on the Premier s Jobs Squad Employment Taskforce. Continued commitment under the Q2 Strategy to halve the number of jobless households and increasing the number of Queenslanders with post-school qualifications to 75% by 2020. QCOSS Recommendations An integrated approach is needed With unemployment on track to reach at least 7.5% by June 2010, a program of active labour market programs is required to mitigate the effects of the recession 22. Macro economic policies 4 P age Employment and Community Participation

have little impact on difficult to reach groups because of a combination of factors including (but not limited to) health, housing and financial capacity issues that affect employment outcomes. Non-traditional approaches such as providing limited credit, extending the availability of public housing, and improved access to health and community support services achieve better results an integrated approach is needed to tackle labour market, housing, health and community support issues in Queensland to limit the growth of long term unemployment, and foster sustainable outcomes beyond the Global Financial Crisis. QCOSS calls for an additional $10 million invested annually for more joined up employment programs, for the most disadvantaged job seekers, through the significant expansion of programs such as Participate in Prosperity (currently approx. $4.5 million pa). Programs must target those geographic areas identified as being disadvantaged in terms of economic participation and educational attainment indicators. The project goals should also be expanded to include projects that are linking the most vulnerable people into the employment service and training systems by providing client advocacy and support. 1. Invest an additional $10 million annually for more joined up employment programs, for the most disadvantaged job seekers, through the significant expansion of programs such as Participate in Prosperity (currently approx. $4.5 million pa). Programs must: target those geographic areas identified as being disadvantaged in terms of economic participation and educational attainment indicators; should be culturally appropriate and incorporate case management with a focus on retraining and linking the most vulnerable people into the employment service and training systems; focus on achieving a work ready status before an employment outcome; explore innovative ways to bring employment services to clients through outreach and other measures; and build its flexibility (for example, enable non-accredited training) and be prioritised for red tape reduction and full cost recovery funding. 2. Focus on young people and expand programs beyond the manual labour emphasis of Green Corps. The Get Set for Work Program under the Skilling Queenslanders for Work initiative is valuable because it emphasises entry level jobs and awareness of apprenticeships, and re-engages young people at risk in training and employment. Traineeships and apprenticeships administered by the State Government should be expanded. 3. Invest in a workforce development and networking strategy for employment services that: benchmarks industry specific accreditation and qualifications; ensures culturally responsive recruitment agencies; builds networks between government service providers, job service providers and nongovernment community service providers to enhance client outcomes and prevent growing long term unemployment; and expands specialist employment services for stream 4 clients, specifically young people, Aboriginal and Torres Strait Islander communities, refugee communities, people with a mental illness, carers and families affected by domestic violence. 4. Rural and remote communities need specific strategies including regional adjustment packages for retrenched workers and travel subsidies for those wishing to participate in training and education opportunities at tertiary institutions. Employment and Community Participation Page 5

5. Develop a Multicultural employment strategy and ensure it includes: A review of skills recognition systems that recognises these systems can often contribute to the disadvantage experienced by migrants. A focus on local workplace knowledge and mentoring, with initiatives to encourage the private sector to give work experience opportunities to people from CALD backgrounds. Mainstream community education highlighting the benefits of employing people from CALD backgrounds, and the availability of cultural competency training for the private sector. 6. Set new job creation targets for the community services sector to bring Queensland up to the national rate. An increase of 3% or 1,800 jobs could form part of Premier Bligh s election commitment of creating 100,000 jobs. Capital works projects should also increase targets for hiring long-term unemployed and others from disadvantaged backgrounds. 6 P age Employment and Community Participation

1. Queensland Treasury. (2009, October). Queensland Economic Review. Retrieved October 2009, from Office of Economic and Statistical Research: http://www.oesr.qld.gov.au/queensland-by-theme/economic-performance/regular-publications/qld-econreview/qld-econ-review-200910.pdf 2 J. Mangan. (2009). Implications for the Queensland Economy from Current World Economic Conditions. Queensland Council of Social Service, Queensland. 3 Based on an unemployment rate of 7.5% by June 2010. Ibid. 4 Figures from the last recession (ABS 2008) show those unemployed for more than 12 months increased from 24.8% in June 1991, to 34.6% in June 1992, and 39% by June 1993. It took ten years to return to below 25% in Jan 2001. Ibid. 5 Inadequate social and physical infrastructure refers here to a range of barriers including inadequate access to transport, access to mental heath services and housing instability/ homelessness. 6 Australian Bureau of Statistics. (2008). Jobseeker experience survey 2008. (No. 6222.0). Canberra, Australian Capital Territory. 7 Queensland Council of Social Service. (2009), Social Policy Forum Report 2009: Views from Queensland s Community Services Sector, Queensland. Retrieved 12 October 2009, www.qcoss.org.au. 8 Australian Bureau of Statistics. (2008) Queensland Stats September 2008, Canberra, Australian Capital Territory. 9 Australian Bureau of Statistics. (2009). Labour Force Australia August 2009. (No. 6202.0). Canberra, Australian Capital Territory, Table 16. 10 Australian Bureau of Statistics. (2009). Australian Labour Market Statistics October 2009 (No. 6105.0). Canberra, Australian Capital Territory. 11 Australian Bureau of Statistics. Census of Population and Housing, 2006 (unpublished data) accessed 15 October 2009 Queensland Government Aboriginal & Torres Strait Islander Partnerships website: www.atsip.qld.gov.au/government/programsinitiatives/closing-gap/targets 12 National Inquiry into Employment and Disability, Issues Paper 1: Employment and Disability The Statistics. Human Rights and Equal Opportunity Commission, Accessed 15 October 2009 at www.hreoc.gov.au/disability_rights/employment_inquiry/papers/issues1.htm. 13 Australian Bureau of Statistics. (2009). Australian Social Trends September 2009 (No. 4 1 0 2. 0), Canberra, Australian Capital Territory. 14 Ibid. 15 Australian Development Strategies, 2009. 16 T. Vinson. (2009). Jobless families in Australia: Their prevalence, personal and societal costs, and possible policy responses, Australian Government. Accessed 12 October 2009, www.socialinclusion.gov.au/documents/4joblessfamilies.pdf 17 Australian Government (2009), Closing the Gap on Indigenous Disadvantage: The Challenge for Australia accessed 17 November 2009 FaCHSIA website: http://www.fahcsia.gov.au/sa/indigenous/pubs/general/documents/closing_the_gap/p2.htm 18 ibid 19 ABS Cat. 6202.0. 20 ABS Jobseeker experience survey 2008. 6222.0, QCOSS Social Policy Forum Report 2009. 21 Australian Development Strategies, 2009. 22 Mangan, 2009. This paper is part of QCOSS s policy platform that contains over 20 policy papers. Go to www.qcoss.org.au for other papers including Mental Health, Violence Prevention, and Social Inclusion. Ground floor, 20 Pidgeon Close (off Beesley St), West End Qld 4101 PO Box 3786, South Brisbane Qld 4101 Ph: (07) 3004 6900 Fax: (07) 3004 6999 Toll Free 1800 651 255 Email: qcoss@qcoss.org.au Website: www.qcoss.org.au Employment and Community Participation Page 7