Why we need a Youth Guarantee

Prior to the pandemic Australia had experienced two decades of continuous economic growth. Despite higher rates of employment than most countries across the OECD, youth employment rates have remained stubbornly high. Young people have not shared in Australia’s jobs boom.

Around 175,000 of young people aged 15-24 were unemployed in June 2022^[1]. In May 2020, around 391,000 (12%) were completely disengaged from work, education and training (NEETs)^[2]. Since the GFC, the share of people aged between 20 and 24 years old that are NEET has stopped falling and during the COVID-19 pandemic there was a notable increase in the NEET share of males in this group^[3]. Participation is lowest amongst young people who face additional barriers to work (for example young carers and youth with a disability or serious mental health condition). The quality of jobs has also deteriorated. The industries that are the largest employers of young people – accommodation and food services and retail services – have become more casualised and are the very industries that have borne the brunt of two years of COVID-19 lockdowns.

The impact of the pandemic on aggregate demand, and accelerating automation and digitalisation of products and services has compounded the enduring impacts of the global financial crisis.

More than 40% of young people entering the labour market after leaving education are casually employed. 15% per are underemployed. Labour market surveys show that only 38% of casual employees transition to permanent employment within 5 years. For young people without post-school qualifications, finding a secure footing in the workforce is harder still. The resumption of skilled migration could compound structural barriers to their sustainable integration into the labour market.