The Community and Public Sector Union (CPSU) has recently achieved a significant victory in its efforts to recreate the defunct Commonwealth Employment Service (CES). The union’s proposal has been approved at the annual conference of the Australian Capital Territory branch, and now it aims to take the campaign to the ALP National Conference. The CPSU argues that restoring the CES would offer policy solutions and enable the government to play a direct role in shaping labour market changes and responding to economic challenges.

The campaign to bring back the CES

The CPSU’s ‘Bring Back the CES’ campaign seeks to dismantle the current policy and system of mutual obligation and compulsory activity, which has been heavily criticised for its administrative burden on employers and job seekers. By proposing the restoration of the CES, the union aims to reintroduce a government-operated employment service that could provide a larger candidate pool to private employers. The move could result in significant cost savings for employers who could source labour from a centralised pool, reducing the need for expensive recruiter fees.

Before the mutual obligation welfare policies were introduced, the Commonwealth Employment Service offered employment assistance and operated its labour pools in various sectors, including construction services and information technology. This allowed agencies to regulate demand for labour types and skills, preventing competition among government employers and stabilising the job market. 

Advantages and oppositions to the restored CES

One of the primary advantages of restoring the CES is the potential to rebuild capacity and capability within the Australian Public Service (APS). With direct government involvement in employment services, the Commonwealth would have a more proactive approach in addressing economic and policy challenges related to the labour market. This move has been long overdue, as the current system has faced criticisms for its failure to address the needs of job seekers effectively.

Additionally, in the context of the current low unemployment rate (around 3.5%), assuming the restored CES had access to a substantial talent pool, it could become a competitive alternative to commercial recruiters. Employers, especially large ones, may find this prospect appealing as it could offer cost savings in hiring processes.

Despite the potential benefits, some argue that the mutual obligation system could be adjusted to be more favourable towards job seekers while maintaining a public-private sector partnership arrangement. Critics also point to progressive countries like Sweden that have included private sector providers in delivering public employment services. 

Furthermore, whether a revived CES could effectively compete with commercial recruiters in the modern job market remains uncertain. The success of such an initiative would heavily depend on various factors, including the size and quality of the talent pool accessible to the CES.

As the campaign progresses and approaches the ALP National Conference, it will be interesting to see how stakeholders respond and whether a modern CES could effectively address the needs of job seekers and employers alike in today’s dynamic job market.

Jomar Teves

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After four years in business school and working for multinational clients, Jomar believes he can improve the world through his writings via Public Spectrum, by informing the public on the latest news and updates happening around the government and society. Jomar has eight years experience as a writer and has a degree in Business Administration and Entrepreneurial Marketing.

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