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

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

Archive