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

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

Archive