The Federal Government last night announced their 2016-17 budget, which includes an $840 million Youth Employment Package called Young Jobs PaTH — which stands for Prepare, Trial, Hire. The Young Jobs PaTH youth employment program seeks to assist 120,000 job-seekers gain new skills and experience that will help them join the workforce.

Commencing in April 2017, job seekers under the age of 25 will be able to undertake comprehensive skills training to prepare them for the workplace. Job seekers will have to register with jobactive – the government body designed to connect employers and job seekers – and training will take place within five months of signing up.

In stage two, the Government will introduce an internship program with up to 120,000 placements over four years to help young job seekers who have been in employment services for six months or more to gain valuable work experience with an operating business.

Job seekers and businesses, with the help of their jobactive providers, will be able to work together to design an internship placement of 4 to 12 weeks’ duration, during which the job seeker will work 15 to 25 hours per week.

In addition to gaining industry experience, job seekers will also receive $200 per fortnight on top of their regular income support payment while participating in the 1 to 3-month internship.

Treasurer Scott Morrison said this initiative was not “just another training program.”

“From April 1, 2017, young job seekers, who need to boost their job-readiness, will participate in intensive pre-employment skills training within five months of registering with Jobactive,” said Morrison in his budget speech on Tuesday night.

“The first three weeks of training will focus on skills such as working in a team, presentation, and appropriate IT literacy.

“A further three weeks of training will centre on advanced job preparation and job hunting skills” said Morrison.

Businesses that take on interns will receive an upfront payment of $1,000, and benefit from the opportunity to see what a young worker can do and how they fit in to the team before deciding whether to offer them ongoing employment.