Friday, June 3, 2011

Australian Welfare System:Fear of failure Causes Unemployment


I welcome this Australian study on Australia’s Government Unemployed Welfare Scheme

The study essentially concludes that people are scared to get a job and run the risk of it not working out for whatever reason.

They therefore prefer to stay on the dole because of the inherently demeaning and totally out of proportion requirements to access this basic social security right if they need to do so if things don't go right. These are some of my thoughts on the current system.

  • Given the structure of Australia’s welfare system the interface with authorities is incredibly demeaning, especially so, for people who find it difficult to deal with authority figures, paperwork or just issues that we take for granted.
  • The processes required to access the system or more importantly in the context of this study re-access, are far out of proportion with the benefit and are a disincentive to take risk in employment searching in the first place.
  • A majority of people trying to access the system, whilst many are not impoverished, they do live hand to mouth and waiting weeks for financial support is untenable thus reducing employment risk taking by getting "off the dole".
  • As many are not prepared to take the risk of employment that may be uncertain they won,t, therefore decreasing the likelihood of getting employment in the future. The old saying it is easier to get a job if you have a job
  • Thus a long term unemployment scenario is effected. No risk taking in job search, longer on benefits, loss of skills, less credibility with potential employers, less likelihood or desire to get a job.
As the report says fixes are cheap and easy.

 I can think of one straight off the bat so to speak. If you go off security payments for a job and you lose that job for whatever reason (and don't think employers don't use vulnerable people) then you sign one piece of paper and your benefits are fully restored. You took this risk it failed (it may not have) you don't starve for a week or two and you are not put through the whole soul destroying and demeaning paperwork and interview rigmarole.

I think a lot of people will stick once they get that job. It certainly would cut administration costs for the Government.

    Australian Welfare System:Fear of failure Causes Unemployment

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