The Federal Opposition says the Government will need to spend millions of dollars to help troubled Job Network providers.
Under the system, the Government pays private job agencies to find work for the unemployed.
The Opposition Employment spokeswoman, Jenny Macklin, says the jobless are not using the agencies because technical problems mean they are not helpful in finding jobs.
She says many agencies will collapse unless the Government injects millions of dollars into them.
“Many Job Network providers are going to go broke unless they get these additional payments from the government, which we understand amount to at least $30 million. The Job Network is in serious crisis”.
The Federal Employment Services Minister Mal Brough dismisses Ms Macklin’s remarks.
He says there is a problem with many people registered as unemployed who are not turning up for meetings organised through the Job Network.
But Mr Brough says this is the fault of the people involved, not the Network.
“The Job Network is in no trouble whatever in regards to financial viability or anything like that. There is only one question here, and that is why unemployed people who have been sent a letter with a time, a date and a place for a meeting have not shown up in rather large numbers, and we’re investigating it and we will deal with it. There are only two options for unemployed people, and that is to willingly accept the help that the taxpayer is paying for, to assist them into work, give them the skills that they need and the access to the advice that they need, or get off unemployment benefits”.