What is JobMaker and how will it help Australians out of unemployment?

On Tuesday, Prime Minister Scott Morrison unveiled the government’s plan to stimulate job creation in a struggling employment market.

As part of the government’s coronavirus economic recovery package, the Coalition’s plan is to fix Australia’s flawed skills and training system via JobMaker.

Morrison announced that the “economic lifelines” of JobKeeper and JobSeeker are only short-term, temporary measures. The next step to reopening the economy, Morrison explained, is JobMaker.

Watch: Scott Morrison announces ‘JobMaker’. Post continues below. 

Here’s what you need to know about the JobMaker scheme.

What is JobMaker?

JobMaker is a scheme introduced by the Coalition government that will aim to overhaul the skills systems by ensuring funding is more closely linked to skill gaps based on what businesses need.

Morrison said JobMaker is “designed to give industry the opportunity to shape the training system to be more responsive to their skills needs and take responsibility for qualification development.”

Three pilots for the JobMaker scheme have already been established, focusing on human service, digital technologies and mining.

Side note… Here are the news stories we’ve missed while we’ve been COVID-19 obsessed. Post continues below audio. 

Morrison wants to ditch the “clunky and unresponsive” system currently in place, and increase federal funding to see more consistency across states and greater transparency around spending.

“It is no wonder that when faced with this complexity, many potential students default to the university system, even if their career could be best enhanced through vocational education,” Morrison said.

Morrison notes that the Commonwealth currently gives states and territories $1.5 billion for skills and workforce development, but there is “no line of sight on how states use this funding”.

“Where targets do exist, they are aspirational; if not met, there are no consequences.”

Morrison believes this has been “ineffective” and hence will introduce JobMaker to overhaul this system.

How will it help Australians out of unemployment?

With unemployment in Australia now around 10 per cent, according to estimates by the government, the coalition is committed to targeting employment growth by ensuring the workforce is educated and highly skilled.

The coalition’s scheme warns companies that they need to “get off the medication” of subsidies such as JobKeeper.

“We must enable our businesses to earn our way out of this crisis. That means focusing on the things that can make our businesses go faster,” Scott Morrison said. 

“At some point, you’ve got to get your economy out of ICU.

“You’ve got to get it off the medication before it becomes too accustomed to it.”

Scott Morrison added: “Governments, therefore, must live within their means. So, we don’t impose impossible debt burdens on future generations.”

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