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

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

Archive