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JobTrainer extended to help the young and unemployed

Tuesday’s budget will see the $1 billion JobTrainer program extended for another 12 months. The scheme, which aims to re-skill school leavers and young, jobless Australians, was initially meant to finish up in September but Treasurer Josh Frydenberg says it will extended for another 12 months, according to the ABC.

Areas of shortages the scheme subsidises apprenticeships and training in includes agriculture, construction, gardening, aged care and childcare.

What is JobTrainer?

The JobTrainer package has two parts. The first is aimed at keeping apprentices employed, while the second involves providing subsidies for the young unemployed and school leavers.

Under the subsidy scheme employers receive a 50 per cent wage subsidy, of up to $7,000 a quarter ($28,000 per year) if they hire an eligible young person. Unlike JobKeeper, employers are not required to demonstrate reduced turnover to qualify.

The JobTrainer program funds both apprenticeships and courses.

The JobTrainer program funds both apprenticeships and courses.Source:istock

The training part of the package allows for 340,000 free or low-cost places on courses. The courses and costs covered are dependent on the state or territory which are half-funding the scheme.

Funding has been prioritised for areas that are likely to see job growth identified by the National Skills Commission.

“JobTrainer has been a very successful program — more than 100,000 places already and that is helping equip people with the skills they need to find the work that they need,” Mr Frydenberg told the ABC.

“Let’s not also forget our wage subsidy for apprenticeships. We put in place a wage subsidy to support 100,000 apprentices thinking it will take 12 months or longer for them to get into work. We did that in five months, and we topped up that apprentice wage subsidy scheme.”

Treasurer Josh Frydenberg. Picture: NCA NewsWire / Gary Ramage

Treasurer Josh Frydenberg. Picture: NCA NewsWire / Gary RamageSource:News Corp Australia

The current unemployment rate is 5.6 per cent and the hope is that schemes like this will drive it down towards 4.5 per cent.

“We have a historic opportunity to drive the unemployment rate even lower back to where it was pre-pandemic and even lower still,” Mr Frydenberg said.

What’s happened to JobMaker?

JobTrainer was announced in October’s 2020-21 Budget and Economic Recovery Plan as part of the $74 billion JobMaker Hiring Credit which was largely unsuccessful and is on the brink of being dropped.

Part of the scheme involved employers receiving $200 a week if they hire an eligible young person aged 16 to 29 years or $100 if they hire someone aged 30 to 35.

In March, the Government announced only 609 people has taken up the opportunity, a far cry from the 10,000 predicted to initially take it up and the 400,000 it aimed to help in total.


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