You know the labour market is tight, when you start to pull from the fringes of the market – youth and young adults. Conversely, when the labour market weakens, the younger workers typically bear the brunt of rising unemployment. We’re seeing this play out today. Total employment is around 21k lower than last year’s levels. And youth (15-19 years) and young adult (20-24 years) make up close to half of the decline. The youth unemployment rate has climbed to 23.9% - the highest since 2013. It also appears that these younger workers are exiting the market, as the participation rate falls to 50.2%. In a silver lining, some have returned to education. That’s good news for when they re-enter the market down the line. Despite this, there has still been an increase in the rate for those not in education, employment, or training (NEET). In the last 12 months, the youth NEET rate increased by 0.4%pts to 12.3% and the young adult NEET rate rose 1.9%pts to 16.6%. Like others disillusioned by the current economic environment, some may be waiting on the sidelines, hoping for better times.
The other alternative is to flock the nest entirely. The labour market across the Tasman is relatively stronger. The Aussie youth unemployment rate is a stark 9.9%pts below ours at 14%.
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