The Productivity Commission has released a report on the income for young Australians in the 10 years to 2018, revealing that the salaries for 15 to 34-year-olds declined over the period while those of older Australians increased.
In its report, Why did young people’s incomes decline?, the Commission describes the 10 years of work as a ‘lost decade’ for Australia’s young.
Commissioner Catherine de Fontenay said young people faced discouraging prospects in a tough job market.
“Young people have experienced a ‘lost decade’ of income growth,” Commissioner de Fontenay said.
“This means they entered the COVID-19 crisis already on lower wages and usually with limited savings,” she said.
“There is a danger they will simply give up on their aspirations as they take positions further down the jobs ladder.”
Commissioner de Fontenay said the Report showed the main driver behind lower incomes for young people was falling wage income.
“It turns out that the ‘low wage growth’ story is essentially a story about people under 35,” she said.
“If we look at average wage growth for those over 35, it hasn’t slowed.”
She said the labour market became more competitive after the Global Financial Crisis (GFC) and young job-seekers bore the brunt of that.
“The rise of part-time work meant that we did not see a large increase in unemployment, but many young people wanted to work more hours.”
“Over this same period government support decreased for many students and young parents, because eligibility for Youth Allowance and Family Tax Benefits was tightened,” Commissioner de Fontenay said.
The Productivity Commission’s 198-page report can be accessed at this PS News link.
