Helen McLaren

Youth and Inclusive Education Group Department of Education

Australia has a strong foundation to build on, but significant challenges remain to ensure that young people are productively participating in the economy.
But, during the same period: Employment went down by 6.3 ppts; Unemployment and inactivity went up (by 3.1 ppts) and 360,000 young people are unemployed or inactive. But: 200,000 20-24 year olds do not have a year 12 qualification. The changing economy means that increasingly jobs will require a higher skill level than Year 12. But:

Participation in Education is increasing

In 2013, 41.1% of 17-24 year olds are participating in full-time education, an increase of 3.1 percentage points (ppts) since 2008.

In 2013, 85.9% of young people achieved a Year 12 or equivalent (Cert II) qualification, an increase of 1.7 percentage points from 2008. Attainment is increasing Indigenous attainment rates are on track to achieve the target to halve the gap by 2020.

At 53.9% Year 12 or equivalent (Cert II) attainment, there is still significant disadvantage for Indigenous young people.

But:

Unemployment is low by international standards

Australias youth unemployment rate and long-term unemployment compare favourable to the OECD average.

Young people now account for 40% of all unemployed people in Australia the youth unemployment rate relative to the overall unemployment rate is higher than the OECD average Despite a recovery to overall employment youth unemployment remains above preGFC levels.

Around 360,000 17-24 year olds are not engaged in F/T education and are unemployed or not in the labour force. A further 310,000 1724 year olds are only employed part-time.
Number of persons ('000) aged 15-24 years, by education and labour force status, May 2013
400.0 Persons ('000) 350.0 300.0 250.0 200.0

Most young people make a successful transition.

150.0 100.0 50.0 0.0

14% of 17-24 year olds are disengaged from education and employment. A further 12% are only employed P/T

15

16

17

18

19
Age

20

21

22

23

24

Not attending full-time education Not in labour force Not attending full-time education Employed P/T Attending full-time education

Not attending full-time education Unemployed Not attending full-time education Employed F/T

Source: ABS 6291.0.55.001 - Labour Force, Australia, Detailed - Electronic Delivery, May 2013

The proportion of 15-19 year olds who are inactive (i.e. not in the labour force or full-time education) now exceeds those who are unemployed.
Activities of persons aged 15-19 not in F/T education, 2000-2013 (%)
19% 18% 17% 16% 15% 14% 13% 12% 11% 10% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Unemployed

Not in labour force

Source: ABS 6291.0.55.001 - Labour Force, Australia, Detailed - Electronic Delivery, May 2013

Some 204,000 15-24 year olds were inactive in September 2012.

For around 70,000 inactive young people, there is no obvious reason for their inactivity. Around 41,000 persons were engaged in some form of education or unpaid work Around 56,000 persons have caring responsibilities Around 37,000 persons reported health problems that may affect their capacity to engage

Main activity of inactive 15-24 year olds September 2012

Travel, holiday or leisure activity, 12.5 Other, 18.0 Retired or voluntarily inactive, 4.4

Attending an educational institution parttime*, 35.3

Working in unpaid voluntary job, 5.2

Home duties, 35.4

Own long-term health condition or disability, 28.5 Own short-term illness or injury, 9.0 Looking after ill or disabled person, 5.9

Caring for children, 50.3

Source: ABS 6220.0 - Persons Not in the Labour Force, Australia, Sep 2012; ABS 6291.0.55.001 - Labour Force, Australia, Detailed - Electronic Delivery, Sep 2012 * Number of persons attending an educational institution part-time is estimated by subtracting the number of persons in other activities from the total number of persons that are not in the labour force and not attending full-time education ** Home duties is maintaining a home, which may include such activities as cleaning, washing, tidying or cooking. These home duties are often referred to as home maintenance or house work.

Inactive youth are also amongst the least likely youth to be receiving financial assistance from their parents.
Proportion of youth (not studying) who receive financial transfers from their parents
At age 18
70 66.1 60 70

At age 20

59.7
55 49.1

60.4

60

50

50 43.4

46.8

41.3
38.3

40

40 33.6

30

30

20

20

Source: Cobb-Clark and Gorgens (2013) The capacity of families to support young Australians: financial transfers from parents, co-residence and youth outcomes. Analysis is based on data from the Youth in Focus survey.

The Australian Government program landscape for young people

2013
Youth Connections School Business Community Partnership Brokers Job Services Australia

2014

2015

Funding ceases December 2014 Funding ceases December 2014 New Contract

Reconnect
15 new headspace

Headspace

centres open early 2014

Successful Youth Transitions are important for the individual, the community and the economy.
Failing to make a successful transition from school carries costs for young people Costs include higher incidences of unemployment, casual work and inactivity, reduced opportunities and lower earnings We know that the risk of these negative outcomes is compounded by a failure to attain a Year 12 or equivalent qualification.
If all those currently making mixed or poor transitions were to instead experience the labour market outcomes of those making good transitions the addition to labour income would be equivalent to boosting national GDP by just under $1.5 billion in todays dollars that would be an addition to overall GDP of about 0.11%.

For 25-64 year olds without an upper secondary education: - Unemployment rates are 1.6 times higher

- Earnings are 19% lower

Help the young unemployed find a job.

Try to reconnect youth who are neither in employment nor in education or training with learning and working Try to reconnect early school leavers with the education and training system

Encourage youth to stay in education until they have acquired a recognised diploma

Tackle barriers facing disadvantaged youth beginning in early childhood and throughout their schooling, and as teenagers and young adults in the labour market

What do best practice countries do?

High national priority is placed upon trying to ensure that school-to-work transitions are effective. There is a focus on preventing disengagement. Networks of nation-wide services that track and rapidly contact young people who disengage. Integrated youth support service separate from public employment provider Mutual obligation approach Strong apprenticeship systems

What do we know works?

Flexible not prescriptive Outcomes focused Youth focused Education and training focused Employability Skills Holistic Integrated