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

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

Archive