A second interim report into job security, released on Tuesday, has revealed the federal government has continued to spend millions on labour hire and consultancy firms for short-term capability requirements, resulting in capability gaps for the workforce.

Among the report's 38 recommendations is a push to remove the average staffing level cap to enable the hiring of permanent public servants, the central collection of labour-hire data by the public service commission, and the introduction of a supplier code of conduct.

Community and Public Sector Union national secretary Melissa Donnelly, who appeared before the committee in August, said the federal government should be a shining example for private-sector employers follow.

But that hadn't been the case, she said.

"The pandemic has highlighted the extent of insecure work in this country, and the damage it is causing," she said in her opening statement.

"The Commonwealth should be leading the way on a solution, it should be a model employer - that is clearly not where we are today - and the Commonwealth could and should be doing more to support secure jobs."

This Inquiry shows that the Morrison Government prefers to employ people in insecure labour hire jobs than allow people to find a secure job they can rely on.

Moving labour hire workers to employment in the public service will not only cost less, it would provide thousands of Australians with jobs they can count on while helping to rebuild the capacity of our public service.

Download the report from the Select Committee on Job Security.

Read more in this Canberra Times article.

Watch Tony Sheldon - Senator for NSW talk to the report in parliament below.