Evaluation of the Australian Wage Subsidy Special Youth ...

35
term unemployed for over 12 of the last 15 months, or the disadvantaged groups listed.
The designated disadvantaged groups were “...disabled, sole supporting parents, migrants
with English language difficulties, Aborigines” (Kesteven (1987): 45). The positions
were required to be full-time, but with exceptions possible for the disadvantaged groups,
and available for 26 weeks continuous employment. Job vacancies had to be notified with
the CES, and at least the Award wage 7 was paid to placements. There was a special
Jobstart self-service board with all wage subsidy jobs displayed on it, and the CES could
also give a card called, a ‘self-canvassing card’, that could be shown to employers at the
job interview (Victorian State Office (1985) p7 and DEET (1994) p38).
Jobstart was described as a general wage subsidy scheme, where employers received
subsidy for placements where the rate varied with age. Private Sector Jobstart subsidy
rates for 1985-87 are shown below in Table 2.1. The Jobstart Special rate was higher than
the basic rate, and rates increased with age. In 1985/86 35,098 placements were approved
in private sector Jobstart, with expenditure for the year at $18,787 million (Kesteven
(1987): 46).
Jobstart was expanded considerably during the Australian recession, but was more
commonly referred to within the Job Compact package. After 1989, it was part of the Job
Compact along with the National Training Wage [NTW]. The NTW was a training wage
but was “...to be supplemented by subsidies to entice employers to provide training”
(OECD (2001): 198). The Job Compact was part of the Working Nation package of
initiatives, and centred on an offer of 6-12 months job placement in the private sector, but
usually 9 months, to all who had been in receipt of benefits for more than 18 months
(OECD (2001): 198). This eligibility required a longer period of unemployment than in
1987, and so the targeting of the programme was tightened in this new form, however
against this, the subsidy length was extended to 12 months. This had strong effects on the
programme. There were issues of low take-up. Sheen and Trethewey (1991) p38 point
7 Australia has extensive union wage agreements, which specify a complex system of minimum wages.
These are termed Award Wages.