Privatised Jobactive agencies make pay dirt from COVID-19

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Per Capita has released a report which concludes that the coronavirus pandemic will be a financial boon for employment agencies that are members of the federal government’s Jobactive program.

The think tank’s report suggests that Jobactive agencies are likely to receive at least $210 million in additional service fees, which is based on expectations that an extra 700,000 unemployed people will be assigned to Jobactive agencies as the jobless rate rises.

Per Capita criticised the Jobactive program in a previous report in 2018, and it has called for a major overhaul of the program:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.