Over 50,000 young Australians now classified as long-term unemployed: report

Published
13 April 2014

The number of young Australians who are unemployed for longer than a year – referred to as long-term unemployment – has more than tripled since 2008.

The alarming new analysis of Australian Bureau of Statistics data released today by welfare group the Brotherhood of St Laurence reveals more than 50,000 people aged between 15 and 24 nationwide have now been on the unemployment treadmill for more than 52 weeks.

Unemployment is increasingly far from a passing phase for many young people, the report, On the treadmill: young and long-term unemployed in Australia , found.

"The experience of being young and unemployed in Australia has painfully changed. More than 18 per cent of the overall 257,000 unemployed young people in Australia are now consigned to the long-term unemployment queue," said Brotherhood of St Laurence executive director Tony Nicholson.

"There is now an overwhelming and urgent need to do more to secure the future for a new generation. As parents, communities and as a nation, we need to act now to tackle the crisis of youth joblessness and restore hope."

The unemployment rate nationally among those aged 15 to 24 was 12.5 per cent at March 2014 – more than double the overall rate of unemployment.

But the Brotherhood's research shows that a rapidly rising unemployment rate is only half the story about young people who are jobless.

It's also taking them a much longer time to find work.In January 2008, the average duration of unemployment for a young person in Australia was around 16 weeks. By February 2014, however, the average length of time out of work had risen to nearly 29 weeks – more than half a year on the youth unemployment treadmill.

"Our globalised economy is coming down really hard on our young people, especially those without work experience or tertiary education. It's as simple and as complex as that," said Mr Nicholson.

"Australia needs a new approach to assist unemployed youth to build their qualifications, skills and experience to obtain a job in the modern economy."

He also warned: "There is a growing number of our youth who are in danger of being locked out of stable employment for the long term. The Catch 22 for our young people is that the longer they are out of work, the harder it is to find a job."

Mr Nicholson said there was evidence to show that the scaring effect of early unemployment continued into later adult life.

"A long period of unemployment in your youth dramatically increases the chance of being unemployed in your adult working years," he said.

Read the Brotherhood of St Laurence's latest report and data: On the treadmill: young and long-term unemployed in Australia.

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