By Denis Hay
Description
Explore how a Job Guarantee in Australia can restore full employment, end precarious work, and strengthen communities through dollar sovereignty.
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Introduction: Why We Need to Talk About Work Security
Australia faces a growing crisis of precarious work. Casual jobs, gig platforms, and labour hire firms are increasingly dominating more sectors each year, leaving millions without stable hours, sick leave, or retirement security. According to the Australian Bureau of Statistics, around 22% of employees have no paid leave entitlements, a clear indicator of insecure work (abs.gov.au).
It wasn’t always this way. For three decades after World War II, Australia ran under a full employment policy, with the Commonwealth Employment Service ensuring anyone who wanted a job could find one. That commitment was dismantled in the neoliberal era, replaced with unemployment as a policy tool.
A Job Guarantee in Australia would restore the principle that every citizen has the right to decent, secure employment. Backed by Australia’s dollar sovereignty, it is not only possible but necessary to end the scourge of insecurity.
The Problem: Why Australians Feel Stuck
1. Casualisation and the Gig Economy
Since the 1980s, insecure work has surged. Gig platforms like Uber and Deliveroo, labour hire agencies, and casualised roles in retail, aged care, and universities have made stable employment increasingly rare. The ABS notes that as of 2024, more than 2.6 million Australians work without leave entitlements, a figure higher than before the pandemic (abs.gov.au).
Younger Australians, women, and migrants are the most vulnerable groups. Many are juggling multiple part-time jobs or forced into “flexible” contracts that help employers, not workers.
2. Labour Hire Firms Undermining Wages
Labour hire companies are often used to bypass enterprise agreements. Workers usually perform the same tasks as permanent employees but for lower pay and fewer conditions. This creates a “two-tier workforce” where secure staff are undercut by cheaper, disposable labour.
Unions warn that this practice weakens collective bargaining and entrenches wage stagnation. For employers, it’s a convenient cost-cutting tool. For workers, it’s the erosion of hard-won rights.
3. The Social and Economic Toll of Insecurity
The consequences are profound:
- Families can’t plan for mortgages or retirement.
- Financial stress contributes to mental health struggles.
- Stagnant wages deepen inequality.
- Communities suffer when stable jobs vanish, especially in regional areas.
- Insecurity also has hidden social costs. Research shows that financial stress and unstable employment are linked to higher rates of family and domestic violence, as economic dependence can trap victims in abusive situations.
Precarious work is not a natural outcome of modern economies – it is a political choice enabled by policy.
The Historical Context: When the Government Guaranteed Jobs
4. Australia’s Full Employment Era (1945–1975)
In 1945, Prime Minister John Curtin’s government released the White Paper on Full Employment in Australia, making it official policy that unemployment would not be tolerated. Governments invested heavily in public sector jobs, apprenticeships, and TAFE, creating stable work and training pathways.
The Commonwealth Employment Service (CES) was central to this model. It actively matched workers with jobs, ensuring that unemployment was rare, short-term, and supported. This period represented a de facto Job Guarantee in Australia.
5. From CES to Private Job Providers
By the 1990s, neoliberal reforms dismantled the CES, replacing it with private employment service providers. These firms profit from government contracts but are widely criticised for failing job seekers.
The Senate Inquiry into Jobactive (2019) found an “overemphasis on compliance,” with providers engaging in practices like “creaming and parking”, focusing on easy-to-place clients while neglecting those most in need.
The Australian National Audit Office also reported weak oversight, with providers milking the system through dubious claims. Many unemployed Australians report punitive treatment, such as:
- Being forced into meaningless training courses.
- Having payments suspended for minor breaches.
- Being funnelled into exploitative work-for-the-dole schemes.
Unlike the CES, which was effective and humane, today’s system profits from unemployment rather than ending it.
6. The Neoliberal Shift – From Full Employment to “Natural Unemployment”
Economists adopted the NAIRU theory (Non-Accelerating Inflation Rate of Unemployment), which treats joblessness as necessary to control inflation. Policymakers abandoned the idea of full employment, accepting that a certain level of unemployment was desirable.
This shift normalised insecurity, leaving millions of Australians vulnerable while corporations received help from lower wage costs.
7. International Precedents for Job Guarantees
Historical Examples
- US New Deal (WPA, 1935–1943): Employed millions in public works, cultural programs, and education. Proved, governments can rapidly create jobs at scale.
- Argentina’s Jefes de Hogar Program (2002–2006): Provided part-time work to heads of households during economic collapse, preventing extreme poverty and stabilising communities.
Ongoing Example
- India’s MGNREGA (2005–present): World’s largest active job guarantee. Legally guarantees 100 days of paid rural employment per household annually. Focuses on land care, infrastructure, and rural development. Demonstrates feasibility and sustainability at scale.
The Case for a Job Guarantee in Australia
8. What a Job Guarantee Is
A Job Guarantee means the government acts as the employer of last resort, offering jobs at a living wage to anyone willing and able to work. These jobs would:
- Be locally designed to meet community needs.
- Provide fair pay, sick leave, and superannuation.
- Focus on areas the private sector neglects – environment, care, education, and regional revitalisation.
9. Why It Works with Australia’s Dollar Sovereignty
Australia issues its own currency, the Australian dollar, which means it cannot “run out of money.” Modern Monetary Theory (MMT) explains that government spending creates money in circulation, while taxation functions to manage demand.
This means affordability is never the issue, the real limit is resources and capacity. A Job Guarantee sets the minimum wage floor, stabilises inflation, and ends the waste of unemployment.
The Benefits of a Job Guarantee
10. Social Benefits
- Restores the dignity of work and reduces marginalisation.
- Strengthens families by providing a stable income.
- Improves mental health and community wellbeing.
- Reduces vulnerability to domestic violence by giving people, particularly women, economic independence and stable income (see references below).
11. Economic Benefits
- Boosts demand by putting money in people’s pockets.
- Acts as an automatic stabiliser during downturns, expanding in recessions, contracting in booms.
- Forces private employers to offer fair wages and conditions to compete with Job Guarantee roles.
- This is precisely why many corporations would pressure governments not to implement a Job Guarantee. It disrupts their reliance on cheap, insecure labour and shifts bargaining power back to workers. Industries built on casualised and underpaid work, from hospitality to agriculture to labour hire, would no longer be able to exploit desperation.
12. Environmental and Community Gains
- Creates jobs in climate adaptation: renewable energy, land care, and disaster resilience.
- Supports aged care, education, and disability services.
- Revitalises regional and rural communities through locally designed projects.
Addressing the Criticisms
13. “Too Expensive” – The Real Cost is Unemployment
Critics argue a Job Guarantee would cost too much. But with dollar sovereignty, funding is never the issue. The full cost is unemployment itself: wasted skills, higher welfare spending, and social harm.
14. “Make-Work Jobs” – Ensuring Real Public Purpose
Another criticism is that jobs would be meaningless. However, if designed in collaboration with councils, Indigenous groups, and community organisations, Job Guarantee projects would address genuine unmet needs.
15. “People Won’t Work” – Myths Versus Reality
Evidence shows most Australians want secure jobs, not welfare dependency. The Job Guarantee provides meaningful work at a fair wage, restoring choice and security.
Policy Blueprint: Building an Australian Job Guarantee
- Establish a National Job Guarantee Agency to administer programs.
- Guarantee a living wage indexed to inflation.
- Partner with local councils, Indigenous communities, and NGOs to design and deliver projects.
- Replace punitive job service providers with a supportive public system.
- Fund federally using Australia’s sovereign spending power.
Frequently Asked Questions
Q: How does a Job Guarantee differ from Universal Basic Income?
A UBI provides cash without work, while a Job Guarantee ensures everyone who wants a job can have one. UBI doesn’t prevent precarious work; a Job Guarantee sets fair wage standards.
Q: Will it replace unemployment benefits?
No. Welfare is intended for individuals who are unable to work. The Job Guarantee complements, not replaces, the safety net.
Q: How will it affect private businesses and labour hire firms?
It forces them to lift wages and conditions, since workers will always have the choice of a Job Guarantee role. Exploitative labour hire models would be weakened.
Q: How does it prevent inflation?
The Job Guarantee anchors inflation by setting a fixed public wage floor, preventing uncontrolled wage-price spirals.
Final Thoughts: Full Employment Is a Choice
Australia once had a system that guaranteed jobs through the CES and full employment policy. That system was dismantled, replaced with insecure work and punitive private providers.
A Job Guarantee in Australia would reverse this legacy, restoring stability and dignity. Backed by dollar sovereignty, full employment is not just a dream – it is a practical, achievable policy.
The choice is simple: tolerate precarious work, or guarantee every Australian the right to decent employment.
What’s Your Experience?
Do you think a Job Guarantee in Australia could improve your community? Share your thoughts below.
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Engaging Question:
What’s the first public investment you’d fund with Australia’s dollar sovereignty – housing, health, education, or green energy?
Resources
Australian Bureau of Statistics: Labour Force, Australia: Employment & Unemployment
Australian Bureau of Statistics Working Arrangements: Employees Without Leave Entitlements
Parliament of Australia Senate Inquiry: Jobactive Failing Those It is Intended to Serve
Australian National Audit Office Jobactive: Integrity of Payments to Employment Service Providers
Department of Employment and Workplace Relations: Evaluation of jobactive Final Report
Australian Institute of Health and Welfare: Family, Domestic and Sexual Violence in Australia
ANROWS Research: Economic Insecurity and Intimate Partner Violence
This article was originally published on Social Justice Australia
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“Recognise the right to secure work for all; reverse casualisation” (Socialist Alliance policy statement) sounds like a job guarantee.
You’re right, Gonggongche, the Socialist Alliance has long supported policies that closely resemble a Job Guarantee. Some independents and smaller parties are also open to the idea, even if they don’t always call it that. The challenge is getting the major parties to move away from relying on casualisation and insecure work. A real Job Guarantee backed by the government would make secure work a right, not just a slogan.
Thanks Denis
I see the challenge differently. I see it as lifting the support for Independents and smaller parties to the point where we throw out the Lib/Nats and Labor. I like nearly all of the Greens policies (even though it doesn’t appear to go as far as job guarantee or even a UBW.) and given we are running out of time on climate change they seem to me to be our best bet for coallescing around a movement against the duopoly and throwing the duopoly out.
Labor I see as systemically broken, its executive not representing a party of the workers nor the rank and file but of corporates instead, and the Coalition as ideologically warped. Their supporters would be better off starting new parties in their places.
Thanks, Gonggongche, I completely agree that independents and smaller parties are becoming essential if we want real change. The major parties have drifted too far from representing the interests of ordinary Australians. I also think the Greens, along with other progressive independents, could form a strong foundation for a movement that challenges the two-party dominance. The key is building public understanding of policies like a Job Guarantee and how Australia’s dollar sovereignty makes them achievable, once people see that, support for genuine reform will grow rapidly.
“Independant and smaller parties” have always been essential to good government! The fact that we (the people) have allowed the major parties to squeeze them out of the system is our shame.
The major parties consist of a queen or two and the rest are just drones. For too long this country has been governed by Tweedle Dee or Tweedle Dum and the results are becoming clearer.
Our electoral system needs a good shake up, but I fear complacency will win out.
John Howard’s flexible workforce has been a disaster for workers in many industry sectors. The small business area has been particularly prone to having people work casual hours, as needed, often on call, without seeming to recognise that these workers are also their customers, or would be if they had some disposable income.
IM 100 % for a Job Guarantee its the best Solution i have ever came across whilst i was trying to come up with one my self ….
Denis – i take my hate off to you with this Job guarantee, it is in deed the long over due solution to this ongoing scourge of Punitive welfare , since 1994 , Howard has kept this Punitive Welfare – Work for the Mole – Dole in place and Labour has willingly followed suit,
Your Job Guarantee addresses all the issues and hardships that people experience , its empathetic , Its inclusive, Its humane and its Fair dinkum , I applaud this ingredible act of Social Justice by Denis ,
God Bless you .. Mate.
Thanks, everyone, I appreciate your thoughtful comments. Jonangel, you’re absolutely right that independents and smaller parties have always played a vital role in keeping governments honest. We do need to break free from the Tweedle Dee and Tweedle Dum politics that have sidelined public interest for too long.
Lyndal, I couldn’t agree more about Howard’s so-called “flexible workforce.” It hollowed out job security and reduced people’s capacity to spend and live with dignity, exactly the kind of thinking a Job Guarantee would reverse.
And Jano, thank you for your kind words, that means a lot. I see the Job Guarantee as a practical, humane way to end the punitive welfare model that punishes people instead of empowering them. If more Australians understood how our dollar sovereignty gives us the power to fund secure jobs for all, we could truly rebuild a fairer nation.