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

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

Archive