Long-Term Unemployment Surges Amid Decline in Entry-Level Jobs: Report

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A new report by the Australian Council of Social Service (ACOSS) has highlighted a severe decline in entry-level jobs and a troubling rise in long-term unemployment, calling for urgent reform to Australia’s employment services system.

The Faces of Unemployment 2024 report, supported by the Ecstra Foundation, reveals that since mid-2022, when interest rates began to climb, employment at the lowest skill levels has grown by just 1.9 percent, compared to 7.8 percent overall.

Over the same period, job vacancies for entry-level positions fell by 39 percent, outpacing the overall decline of 30 percent.

This mismatch has led to a sharp rise in competition, with the number of unemployed or underemployed individuals per job vacancy increasing from 2.9 to 4.9.

Decline in Entry-Level Jobs

Entry-level jobs, crucial for people on income support, now make up only 38 percent of employment, down from nearly 42 percent in 2020.

This reduction has worsened long-term unemployment, with 60 percent of those on unemployment payments receiving them for over a year, up from 51 percent in 2012.

ACOSS CEO Cassandra Goldie said, “We have a mismatch in the labour market with fewer entry-level jobs available, making it harder for people on income support to transition back into paid employment.”

The report highlights that 557,000 Australians have been on unemployment payments for more than a year, with 190,000 receiving support for over five years. Among these, 50 percent have a health condition, the majority are women, and nearly a third are over 55.

Employment Services System Under Fire

ACOSS’s also criticised Workforce Australia, revealing that the service helped 11 percent of participants secure employment lasting at least six months.

The report describes the system as focused on “compliance and monitoring rather than helping people find work.”

The research attributes significant barriers to employment for groups such as older Australians, First Nations people, and those with disabilities, many of whom face workplace discrimination, unsuitable job opportunities, and inadequate support.

ABS Data Highlights Labour Market Gaps

Meanwhile, the latest ABS labour market data provides a mixed context for ACOSS’s findings, both supporting and contrasting aspects of the report.

While overall employment rose to 14.5 million and the unemployment rate held steady at 4.1 percent, the continued increase in part-time work—up by 6,200—aligns with ACOSS’s concerns about the scarcity of stable, full-time roles.

The ABS data also highlights persistent underemployment at 6.3 percent, reinforcing ACOSS’s critique of a “mismatch” in the labour market, where fewer entry-level opportunities hinder the transition from income support into secure employment.

However, the broader job growth indicated by ABS, with full-time employment rising by 9,700, presents a somewhat rosier picture compared to ACOSS’s depiction of a shrinking entry-level job market and entrenched long-term unemployment.

Unemployment Clash: Opposition vs. Government

Reacting to the ABS data earlier, Shadow Treasurer Angus Taylor criticised the government’s approach, stating that “Labor’s claims about the job market don’t match the reality.”

He argued that falling real wages and skill shortages reflect an unhealthy economy and called for measures to support small businesses and drive productivity.

“After two years of Labor, real wages are falling and unemployment is growing. Youth unemployment is on the rise and the social services caseload has increased.”

Minister for Employment and Workplace Relations Murray Watt defended the government’s record, highlighting that over one million new jobs have been created since the Albanese government took office.

“This is the most jobs ever created in a single parliamentary term,” Watt said, adding that 60 percent of these jobs are full-time.

ACOSS Proposes Bold Solutions

ACOSS has put forward a series of recommendations to tackle unemployment and improve Australia’s employment landscape.

These include raising unemployment support payments and committing to full employment targets by monitoring unemployment, underemployment, and job vacancy ratios.

The organisation also advocates creating advisory bodies that include employers, service providers, and individuals with lived experience.

Further recommendations include increasing investment in national employment programs, such as wage subsidies and vocational education, establishing an independent quality assurance body for employment services, and trialling local partnerships to support disadvantaged communities.