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

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

Archive