"The current system is not meeting the needs of small business operators in Australia," Ms Carnell said.

"Most small business owners don't look to jobactive for their recruitment needs.

"The recent government review of employment services report, I Want to Work: Employment Services 2020, shows only 4% of employers used the jobactive system in 2018.

"Even back in 2007 it was only used by 18% of employers, which in itself is a very low take-up rate.

"We hear the same stories by small business owners across the country on their efforts to employ through the current system - they end up with applicants who are unskilled or unsuitable.

"There needs to be better matching of jobseeker skills and the needs of small businesses.

"Employers need the right person for the job, otherwise they are wasting time, and time is particularly precious for small business owners.

"We support the federal government's review of its employment services and the I Want To Work report.

"The government will now consider this report and its findings, and there will be further engagement with key stakeholders on the recommendations."