The privatisation of formerly public services is generally justified on the basis that competition will produce better outcomes for less money. In theory, replacing direct public sector provision with competing private organisations is intended to give the users of a system choice and improve service quality while reducing costs.

The design of the employment services system has created a quasi-market that means providers effectively operate an oligopoly in each region. Government contracts dictate where they operate, how many providers are in the area and people in employment services are allocated a provider, rather than being free to choose.

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