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

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

Archive