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

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

Archive