Media Releases

27 Jan 2012 - Adelaide Job Seeker First to Benefit from New Wage Connect Subsidy

THE HON KATE ELLIS MP
Minister for Employment Participation and Member for Adelaide

THE HON MARK BUTLER MP
Minister for Social Inclusion and Member for Port Adelaide

MEDIA RELEASE
27 January 2012

Adelaide job seeker first to benefit from new Wage Connect subsidy

Minister for Employment Participation Kate Ellis was in Adelaide today to congratulate Julie, one of the first job seekers to commence in the Australian Government's new Wage Connect initiative.

With the assistance of Wage Connect, Julie, who has been on income support for more than 10 years, has now secured a new job with Hungry Jacks, Beverley.

"We know that people who have been unemployed for a long period of time have difficulty finding full time employment because they often don't have the necessary skills and work experience employers are looking for," Ms Ellis said.

"Once a job seeker has been unemployed for one year they have a 54 per cent chance of being unemployed for at least one more year after that."
Julie is one of up to 35 000 unemployed Australians who will benefit from Wage Connect, a new subsidy to help employers take on job seekers who have been unemployed for long periods.

Julie lives in the electorate of Port Adelaide and is represented in the Parliament by Minister for Social Inclusion, Mark Butler.

Minister Butler congratulated Julie for taking this important first step towards greater financial independence and praised Hungry Jacks, Beverley for providing Julie with an opportunity to experience the benefits of paid work.

"Julie's story is just one example of how access to education, training and employment opportunities can provide people who have been unemployed for a long time with greater economic security, and the happiness and independence that comes with standing on their own two feet," Mr Butler said.

"I'm delighted to see this initiative taking place here in the electorate of Port Adelaide."

Minister Ellis said "the Government is investing almost $95 million over the next four years in this initiative, which will help long term unemployed Australians to get off income support and into paid work,."
"This investment is about working with employers to give Australians who have been on income support for a long time a chance to get the skills and experience they need to be in the paid workforce."

Wage Connect helps employers to offset their initial training and labour costs and remove barriers that may have stopped them taking on staff in the past.

Wage subsidies of around $6000 are paid to employers who take on and retain people Part of the Building Australia's Future Workforce initiative, the Wage Connect subsidy equates to the average rate of Newstart Allowance over 26 weeks.

Eligible employers will receive around $5 700 for each job placement, or around $220 each week (pre GST), to offset the costs of wages and training for new employees for the first six months they are in the job.

"We know that having a decent job is about so much more than just collecting a fortnightly pay cheque," Ms Ellis said.

"Having a job brings a sense of dignity, a sense of pride in being able to provide for yourself and your family and also a sense of connectedness with your community."
"The Australian Government is committed to ensuring all Australians, particularly disadvantaged job seekers, have the chance to get the benefits of ongoing employment.

The Australian Government will invest over $8.5 billion in employment services over the next 4 years. Employers who would like to learn more about Wage Connect can visit www.deewr.gov.au/wageconnectsubsidy or contact a local employment services provider on 13 17 15.