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

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

Archive