The Productivity Commission has reported that even before the COVID-19 pandemic, Australia’s young people have been struggling to find employment in their desired occupation.
The Commission said its report, Climbing the jobs ladder slower: Young people in a weak labour market, explored the consequences for young people of a weak job market and large increases in the number of university graduates since 2010.
“The report found that after 2008, young people’s job prospects and the growth in their salaries were worse than those of workers aged 35 and over, and compared to young people prior to 2008,” the Commission said.
“While the Global Financial Crisis (GFC) affected Australia less than other countries, its after effects combined with the slowing of the mining boom led to a decade of relatively weak labour demand from 2008,” it said.
“The weak labour market in this period was not characterised by the high unemployment that characterised the 1991 recession.”
“Instead, there was increased part time employment, lower starting wages for young people and constrained choice in occupations despite increased education.”
The Commission said that since 2008, a larger share of graduates found jobs that were lower on the jobs ladder, as measured by a scoring of occupations developed at the Australian National University.
“This in turn has affected their career progression,” it said.
It said many young workers could face long term consequences in the form of occupations lower on the jobs ladder as well as lower salaries than they may have expected in the earlier part of the century.
The Productivity Commission’s 64-page report can be accessed at this PS News link.
