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

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

Archive