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

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

Archive