Youth unemployment Oliver Taylor and Liam Phelps
Youth Unemployment in Australia
2006 started off with an unemployment rate of 10.15% and then gradually declined to a %9 rate in 2006 October, then eventually increased into %10 in early 2008. In Aughust, Australias lowest rate ever %7.61 was recoreded, then skyrocketed to 12% in early 2009. From then on the rate fluctuates between 11-12.5% until late 2014. The rate increases to %14.4 then decreases until the present day, which it stand at %12.65.
The Youth Unemployment Rate by the Australian Bereau of Statistics (ABS) details that Queensland had the highest rate of unemployment (%10-20+) and the lowest rate of unemployment was in western Australia, where the rate is inbetween %6-10 due to factors like our outback being rich in resources, hence more mining companies offering more apprenticeships.
How does Australias unemployment rate fair off against other wealthy economies?
The current youth unemployment rate in Australia stands at 11.72%. The current youth unemployment rate for the OECD stands at 16.2% which is considerably higher then Australia's rate. The Organisation for Economic Cooperation and Development (OECD) is a group of 30 countries that discuss and develop economic and social policy. OECD countries are democratic countries that support free market economies. Australia have a lower youth unemployment rate then the UK. There youth unemployment rate currently stands at 21.02%. The UK is also part of the OECD. Australia also have a higher youth unemployment rate then other countries in the OECD such as Japan who have a youth unemployment rate of 7.95%.
Causes of youth unemployment
Lack Of Qualifications. (Structual)
Young People without any skills are much more likely to be unemployed. Jobs in the food and retail industry are common amongst young people as the amount of knowledge and skill is basic compared to other professions.
Cylical unemployment
This type of unemployment occurs if the economy decreases, less jobs are offered. As a result of a job cut, younger workers are the easiest to get rid of because in most cases they are less expreienced.
Cultural/social factors
Youth unemployment is usually higher among people who have history with drug use, a criminal record or come from a broken family.
Frictional unemployment
School leavers may just take time to find a occupation that they are comfortable with. Factors like an overpopulation of workers in that workforce or what their studying isnt applicable in a desired job.
How does youth unemployment effect a country economically, socially and politically?
High youth unemployment has negative effect on an economy. It will effect the growth and productivity of an economy. High youth unemployment will decrease the amount of university graduates. University graduates have a range of talent, skills and knowledge that could be used in the producing of innovation and contributions to economic growth. High youth unemployment will increase economic costs since there are more money to be paid on social benefits and less money coming in from taxes. If young people are properly accommodated in the labour market then consequences of high youth unemployment will be reduced.
How Does unemployment affect an individual
High youth unemployment has many negative effects on an individual. Being unemployed from a young age will effect your employability in the future because you will lack experience and the skills needed in the workforce. If their is a high youth unemployment rate the risk of poverty will increase. This means the job searching period will become considerably longer for a person who has never been employed then what it will be for an experienced worker. It can effect the their role in society and can represent a serious economic burden on state finances. The youth that are unemployed will be used to accepting part times jobs that are not safe and secure for affording the future living expenses you will need like food, somewhere to live and possibly a car.
Current solutions for Youth Unemployment
- There are many agencies Australia wide that guide young people on the right path when moving from school life to work life, like "Tackle Youth Unemployment" who hope to inspire all youth to identify their dreams, goals and skills so they reach their full potential by linking individuals with specialised support programs and mentors.
- The agency "United Way" works with seven schools across QLD, NSW and VIC to deliver student-focused programs that support the critical school to work transitions
- Many businesses offer apprenticeships to give youth an insite into an industry