Eliane Miles speaks on NEETs in Australia

Monday, September 19, 2016

Analysis by Eliane Miles on new research released this week from the OECD highlights the challenge for young people entering their working years, particularly considering their transition from education.

While unemployment in Australia at just 5.6% is one of the lowest in the OECD, the number of Australian young people not in education, employment, or training (NEETs) has increased by 100,000 since the time prior to the Global Financial Crisis (2008), rising from 10.5% to 11.8% of all those aged 16 to 24 – comprising a total of 580,000 young people today.

The challenges affecting youth unemployment most often lie in a young person’s transition periods. It is normal for young people to spend some time out of education and work – in fact, 2 in 3 young people aged 16 to 24 will spend up to 3 months out of education and work – but the challenge becomes when this period of time becomes greater and the ‘relevance clock’ begins to tick. When 3 months eventuates into a year, or longer, this can lead to cycles of unemployment. Today, 1 in 5 young people aged 16 to 24 spend 12 months or more out of employment, education, or training, and it is these young people that will face the most significant challenges as they try to enter or re-enter the workforce.

The demographic realities play a significant risk factor in young people falling into a cycle of unemployment. 60% of NEETS are women, and while just 3% of young people are indigenous, this percentage rises to 10% among NEETs. There is also a strong correlation between low educational attainment and struggles in entering the workforce - 37% of students who leave school in Year 10 end up not being in education, employment, or training, compared with just 11% of those with a tertiary qualification.

Watch Eliane Miles on 7 News below:




240,000 young people looking for work

Young people out of work are often stereotyped as “slackers” but in fact 41% of NEETs (238,000) are actively looking for work but unable to find a job. Helping these young people find work needs to become a national priority and a focus needs to be given to their education to employment transition. Studies tell us that the key transition in a young person’s life is from learning to earning – from study to employment. If young people are not job ready, they should be directed to a course or traineeship that will help them get job-ready. Greater collaboration between actors (schools, VET providers, tertiary providers, employment services, childcare providers, and employers) is needed, along with a broader focus on not just higher education but vocational learning.

The remaining 59% who are inactive NEETS

Questions are then most often asked about inactive NEETs – the 40% of NEETs who say they would not like a job, and the 19% who would like a job but aren’t currently looking. What is it that has discouraged them or dissuaded them from entering the workforce?

Educationally, we are seeing a significant push towards tertiary educational attainment. A generation ago in 1986, more than half of all students left school in Year 10 with most going on to start work/vocational training. Today, 9 in 10 young people go on to complete Year 12, and the majority of these enter higher education. Nationally, however, 1 in 5 university students drop out in their first year of university, clearly not being ready for the task at hand or convinced of the choice they have made.

And while we are seeing an increase in university qualifications (our predictions estimate that 1 in 2 Gen Z will have a university qualification compared to 1 in 3 Gen Ys and 1 in 4 Gen Xs), we must keep in mind that everything is not just about higher education or STEM skills. It’s about developing a broad skills base that will continue to sustain Australia’s growing economic and demographic footprint.

Challenges in the skills sector

While the VET sector has seen a 50% increase in students placed in apprenticeships since the early 2000s, the sector is also subject to significant inefficiencies. Traineeship and apprenticeship completion rates are low, qualifications are hard to navigate, some federal funding for programs has been withdrawn, and employment service providers geographically only target 60% of NEETs, leaving 200,000 youth un-serviced by employment services.

The benefits of work are more than just economic

In conversations with young people, it serves us to be reminded that jobs do more good for all of us than just money. They provide a young person with a sense of independence, self-esteem, and social connection, as well as the ability to learn and stay future-proofed. The longer that young people stay out of employment, the more they are to lose connection and become social disenfranchised, leading to greater problems.

The challenge of entry will only accelerate

As we look ahead to the next 10-15 years of Australia’s job market, we estimate that 5.1 million of Australia’s jobs will become digitally disrupted. Today’s savvy school leaver is training themselves for jobs that don’t yet exist. The reality is that new jobs which will be created are more complex than the jobs they replace. If a young person is locked out of the workforce today, it is likely that they will face an even more difficult re-entry in years ahead as the skills required to fulfilk workforce demands increase.

The challenge of financial independence will also accelerate

Commonwealth funding will increasingly become tighter. The economy has natural limits, and supporting an ageing population base and those with disabilities is naturally a more pressing national priority than supporting those who can work but are choosing not to. It’s just a matter of time before government benefits to NEETs will dry up.

Having said that, it’s also important to remember that 25% of inactive NEETs and 41% of NEETs looking for work in fact have not received any government benefits to support them. For these young people, support has largely fallen back to the informal economy, with support provided by family members and friends.

The earnings challenge for today’s emerging generation

It is in fact more financially difficult to get ahead early in life than it once was. In the 1970s, for example, when many Baby Boomers graduated from university, the average graduate starting salary was equal to the average full time adult wage, while today the average graduate starting salary of $54,000 is $26,000 less than average full time annual earnings. Student debt is also higher than ever, with more than 1 in 3 (34%) registered debt agreements belonging to 25-34 year-olds, and the average university debt estimated to be around $28,000. Today’s young generations are actually beginning their earning years in more debt than we’ve seen before. Not to mention the multi-fold increase in the cost of housing – a generation ago the average Sydney house price was 5 times annual average earnings while today the average house price is 13 times the average annual full time earnings of $80,000.

Keeping it in perspective

If young people can continue to accelerate their learning, they’ll have greater chances of success. Just 11% of bachelor-degree educated young people are still looking for full time work within 4 months of completing their course, and the strength of Australia’s economy is creating positive opportunities for innovation and entrepreneurship for young people to place their stamp on Australia's future.

ABOUT ELIANE MILES

Eliane Miles is a social researcher, trends analyst and Director of Research at the internationally recognised McCrindle. As a data analyst she understands the power of big data to inform strategic direction. Managing research across multiple sectors and locations, she is well positioned to understand the mega trends transforming the workplace, household and consumer landscapes. Her expertise is in telling the story embedded in the data and communicating the insights in visual and practical ways.

From the key demographic transformations such as population growth and the ageing workforce to social trends such as changing household structures and emerging lifestyle expectations, from generational change to the impact of technology, Eliane delivers research based presentations dealing with the big global and national trends.

With academic qualifications in community engagement and postgraduate studies in international development and global health, Eliane brings robust, research-based content to her engaging presentations and consulting. As a social researcher, she has been interviewed on these topics on prominent television programs such as National Nine News and Today, as well as on radio and in online media.

To have Eliane Miles present to your organisation on Generation Z, the state of today’s education sector, or the future world of work, contact McCrindle at info@mccrindle.com.au or call 02 8824 3422

DOWNLOAD ELIANE'S SPEAKERS PACK HERE






Sources:

OECD, Investing in Youth: Australia 2016

Graduate Careers Australia

McCrindle

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare


Last 150 Articles


Tags

Education Future Forum faith relational engage marriage live the dream future christianity communities entertainment conference presentation wolloomooloo business index cultural diversity Engineering Manager study cancelling event world youth day Gen Y wealth and income Australian Dream identity dreams quote program New Zeland unaffordable holiday 23 million retirement rise of local group session huffington post forecast local communities infographic wall winter housing affordability Melbourne teleworking REIV National Conference australia megatrends insights government teacher Australian community trends JOMO medicine high school conferences census results gen z seasons Sydney Hills Business Chamber families experience household 2016 census pharmacies Scouts demographic trends 1968 infographic emerging trends in depth interviews omnibus organisational culture social researchers meals baby boomers financial fears purpose research visualisation forecasting customer HSC define millenials greatness unemployment mccrindle tea aged care gig economy story 2012 belief cartodb snapshot tattoos TED brand experience social researcher Wagga Wagga global financial crisis menai cold cash ACF2017 nfp charities apartments ACF17 neutral bay event earning high density apartments generation alpha trends of 2017 optimistic mobile cost of living professional home owner online shopping ferry volunteering resilience demography workplace culture consumer budget workforce salary priorities sustainable income award winner not-for-profit Gen X future of work shopper's pick Australian communities community event youth unemployment Crime Rates optus my business awards local community Australian Home norwest report research pack DESTEL entrepreneurial proactive housing ABS young people VIC urban living curiosity World Water Day micro summer earn facts keynote speaker woolworths 40 million innovation Real Estate Institute of Victoria leadership staying in digital cloudy days Tasmania plans list sports professional presenters annual income faux-cilising breakfast australian communities trends report environmental scanning women Hills Shire Council poor winter blues the hills daily commute urban living index training ipswich darwin travel aged care puzzle workshop equip educated Sydney keynote speaker Duchess of Cambridge the great screenage grandparents skills "know the times" social issues potts point publication Myth newspaper narcissism eliane school living university degree sydneycity parents Births mortgage culturally diverse gold coast Christmas presents Aussie mining boom the changing face of dare to dream NBRS Architecture Social Trend divorce australians staying home more Vocational education New South Wales social trends prince george manly South Australia gig global commute Tuesday Trends couple stats twentyseventeen daily telegraph Assistant Store Manager video builders Wodonga Kirsten Brewer Bathburst emerging generations affordable global generations survey design overcast office lifestyle 2020 news investor urban taskforce entrepreneur relevant System's Architect research data 10 years housing trends debt insight volunteering data TAS logan social shifts The Daily Edition January 26th house future of shopping FOMO baby Work place grave decision career consumerism mover and shaker media residents case study Australian Bureau of Statistics car cars non profit leader new york times Love toys Queensland: QLD politics marketing australian weather blaxland educhat shbc future proofing happiness rule keeper Christmas lunch social impact Charlotte financial planning water mateship generation Z CPI demographics trends analyst IT Specialists contiki property market the hills shire student communication focus group perth keynote Australian Census shopping centre Word Up population milestone moderators guide WA suburbs ageing repayments Northern Beaches casual Tuesday Trend census 2016 statistics going out tv internship Hornsby Shire Council work-life NT focus groups generations sun eliane miles jobs of the future area pyrmont hornsby friendship finance healthy future optus ashley fell easter slideshare Canberra church NFP event easy rider leadership workshop life Australia Day 2017 ease of travel media release holidays google growth careers wealth and income distribution trends of 2016 offenders choice workers speaker Australians Channel Seven poker master 1975 gender property micro apartments speakers Aussies Population Clock mentor VET cost national private wealth ACF 2016 Christmas season 2015 victoria affordability the australian dream language cica dessert EFF not for profit 2014 ageing population technology outsourcing networking high density christian Australian schools house price travelling office space recap generation school satisfaction royal influence mccrindle population housing growth engagement mccrindle in the media in the media renting employment australian communities forum increasing densification ideas moreton bay home ownership socialising innovative English volunteer mythbusters McCrindle Speakers showreel investing weekly earnings change cancel plans authenticity crime house price rise challenge emerging technologies impact households DIY royal goal Macquarie University TEDx education research motivate market research fresh food sunburnt country financial clothing organisations changing face of sydney ultimo suburban living sunny days jobs internet crows nest education future report wealth distribution post rationalism charity Mark McCrindle research services average sydneysider follow thrive Skilling divorce rate ashley mckenzie generational trends baby names report pharmacy rich collaboration baby names presentation Channel 7 debate Australian Communities Trends hills religion wedding 2013 supply and demand mother's day Australian Families personalities future proof data analyst census data culture sentiments typical australian online bus christmas resource education sector learner sector wide SMSF communications mccrindle research employers economy Financial Planning Week criminal speakers pack ethnography know the times sydney hills collaborative SMART Valentine’s Day urban Research Director forum cancelling plans futurist university owning a home bondi australian social research marrickville parenting royal family hopes high density living professional services trades dream spirituality acf15 wages selfie children screenage group Australian Trends CBD social media anzac australian community trends report society trends REIV Conference internships 24 million middle class shopping tips home participants workplace trend tuesday 1994 Christchurch tableau thought leadership aussie culture property price NBRS train alpha chairty 2016 census results wellbeing Merry Christmas wealth millionth housing market students public speaker intern friends rising house prices business Australia Day future of education year 7 hills shire Do It Yourself responsive community renter of the future commuters February 16 1980 2017 rain community engagement wage deloitte 2016 professional speaker brand census fail Western Australia father's day real waverton marriages mythbusting sydneysider staff social commentary millennials infographics names media activity schools students village research report low density Royals capital city google for education public speaking professional development faux-ciliser social New Zealand sydney event SRE national crime rates Australia street graphs baby name princess charlotte results data visualisation youth ACF state long weekend economic vegetarian schools Adelaide Financial Planning Association of Australia interactive local investment meetings population map men year 12 social commentator presentations PSI states new office education future storytelling financial dreams Queensland NSW stay home Kiwi Real Estate research media commentary Research Executive transport growing population tea faux-cilise bureau royal baby geomapping sydney speaker work Wellington care support learning hello fresh Caregiver NEETs national wealth teachers personal growth brisbane census monarchy shifts demographic transformations social analysis Australian demographics learning styles social enquiry family litter the average aussie Territory Australian Population social lives entrepreneurs of today survey rent Generation X goals capital cities child care events average aussie house prices spend TED talk Deaths tertiary education Geoff Brailey hobart townhouses business performance vegemite education sector The ABC of XYZ Andrew Duffin baby name predictions Northern beaches Event school students James Ward money visualisation product city financial independence baby name trends land of the middle class demographic paying to work environment world conference future-proof apartment 24,000,000 suburb GPO researcher baby boom work mates office opening teach brands Financial Planning Association etiquette tuesday trend earnings social research Netflix celebration society SA population growth domestic buildings dreaming rental stress visual trends Res Vis demographer socialites young australians financial future VET sector learn lalor park fears cultural diveristy coffee FPA qualitative research click cooking average Australian volunteers sydney metro TDE safe kate middleton sydneysiders data conference speaker Sydney baby names australia report analysis gen alpha ACT Northern Territory Northern Beaches Christian School sector wide study social change balance small business Generation Y communicate public holiday award #censusfail social life panel energy teaching

Archive