The Guardian reported yesterday that thanks mostly to the COVID-19 pandemic, the rate of unemployment in Australia is expected to top a 26 year high of 9.25% by December 2020. The unemployment rate December 2019 was only 5.1% according to the ABS, which rose to 7.4% in June 2020. In terms of people, registered unemployed rose to 992,300 by June 2020, a worrying figure for our country.
The Government has developed various economic stimulus measures to counteract the economic slowdown since January 2020. Despite this we have been receiving calls from some clients who have been made redundant, or other casuals who were never eligible for JobKeeper or JobSeeker.
Those on JobSeeker will possibly need to retrain in other job areas, or change careers, in order to get replacement work.
The Government, with the aim of stimulating the economy, has announced a $2.5 billion JobTrainer Program to retrain, upskill, reskill, and open new job opportunities to Australians, with an additional $1.5 billion to expand the apprentice and trainee wage subsidy.
What is the scope of the program?
Job Seekers and School Leavers
Funds will be allocated for additional training facilities. Vocational education, Short courses and training courses will be offered starting September of this year. This will help the school leavers and job seekers gain or develop the skills they need to get a job.
Job Trainer for employers – Apprentice wage subsidies
There will be a 50% wage subsidy, up to $7,000 per quarter or $28,000 per year. This is aimed at keeping those already employed as apprentices and trainees as at 1 July 2020. Note that this incentive for eligible employers will be extended until 31 March 2021. Note that it is not a scheme to encourage employers to take up new workers of this kind; however hopefully it will help apprentices and trainees stay employed for another 6 months.
Who are eligible?
| Small Businesses | Medium Businesses |
| Employ 20 or less | Employs more than 20, but less than 200 |
| Small business with fewer than 20people, using a Group Training Organisation | Medium sized business with 199 people or fewer, using a Group Training Organisation |
| The apprentice or trainee was undertaking an Australian Apprenticeship with you on 1 July 2020 for claims after this date. Claims prior to 1 July 2020, will continue to be based on the 1 March 2020 eligibility date. | The apprentice or trainee was undertaking an Australian Apprenticeship with you on 1 July 2020 |
| Claims now open | Claims open on 1 October 2020 |
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