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.


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



OECD, Investing in Youth: Australia 2016

Graduate Careers Australia


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


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