Boosting opportunity for Australia’s most disadvantaged through social enterprises

The Albanese Government will work with the social enterprise sector to boost labour force participation and economic development in some of the nation’s most disadvantaged communities as a key outcome of the Employment White Paper.

Labor’s vision is for a dynamic and inclusive labour market where everyone has the opportunity for secure, fairly-paid work and where communities can thrive.

In recognition of the role social enterprises can play in lifting communities, the Government will engage with the social enterprise sector to identify ways to provide more employment and training opportunities for Australians who face disadvantage.

Treasury and the Department of Social Services will lead this work through the Targeting Entrenched Disadvantage agenda.

This work forms part of the Government’s efforts to back local communities, including through place-based service delivery that puts funding, data and decision making in local hands, which is a key reform direction outlined in the Employment White Paper.

It builds on the $200 million integrated package to tackle entrenched disadvantage and support social enterprises as outlined in the May Budget and is part of the Government’s ongoing work in response to the report of the Social Impact Investing Taskforce.

Social enterprises exist specifically to create a social impact and are critical to improving employment outcomes for marginalised Australians battling big barriers to employment as a result of entrenched community disadvantage.

There are more than 12,000 social enterprises across the country with a workforce of more than 206,000 and about 58 per cent are employment-services based.

This growing sector offers employment opportunities to people experiencing disadvantage through inclusive employment opportunities, job training and on-the-job support to people facing complex barriers to work.

The Government will draw on the expertise of the social enterprise sector and build its capacity to improve the labour market outcomes of people who experience entrenched disadvantage.

Treasurer Jim Chalmers said Labor was backing social enterprises “to create more meaningful opportunities for more of our people and helping more disadvantaged Australians get into the workforce”.

“This is something I care deeply about because I want to make more of a difference in communities like my own,” he said.

“We’ll help more people into stable, well-paid employment if we work together.

“When it comes to combating entrenched community disadvantage and helping people break down big barriers to employment, one size does not fit all. This is about partnering with the people who know these places best so we can back the policies and programs that work.”

Minister for Social Services Amanda Rishworth said empowering local communities would help tackle the pockets of disadvantage that exist, often leading to entrenched, intergenerational disadvantage.

“We want to ensure everyone has the opportunity for secure, fairly paid work and that all communities can benefit from a changed way of working so they can thrive,” Minister Rishworth said.

“Evidence continues to tell us that to achieve this we need to listen to – and empower – local leaders along with working with communities and direct services in a way that best meets their needs.

“We owe it to all Australians to tackle entrenched disadvantage in our communities and empowering and partnering with social enterprises we will be a step closer to achieving that goal.”