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

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

Archive