Opinion piece
Youth Studies Australia, Volume 30 Number 2
June 2011
Young people are usually the ones who suffer most when there is an economic decline. A recent paper (Anlezark 2011) confirms that the 2008 economic downturn had quite a profound effect on the fortunes of Australian youth, and significantly impacted on their decisions regarding work and study.
Young people in an economic downturn reveals that young people bore almost the entire weight of the full-time work decline which occurred after the 2008 recession. This was due to a number of factors. As new starters in the labour market, young people lack experience and so employers are less likely to take a risk and offer them work. In addition, the industries in which many young people look for jobs particularly those doing apprenticeships are those such as construction and retail, which are most sensitive to economic changes. Hence when there is a downturn, theirs are the jobs which disappear. An additional concern is if those who can’t find a job or become redundant remain unemployed for a significant period of time. This can have a scarring effect.
Anlezark’s paper compares the latest economic downturn with those of the late 1970s and early 1990s, and finds both commonalities and differences, the latter stemming from structural change in the economy and society. It is common to find that youth unemployment increases and persists, full-time work becomes harder to find, and these factors push young people into full-time study and part-time work.
Respondents in the 2009 Longitudinal Surveys of Australian Youth (LSAY) revealed that they were fearful of unemployment, and because jobs were hard to find some chose to study instead of looking for a job after leaving school or changed the focus of their studies to an area with better job prospects. Many accepted inferior jobs or casual work, rather than be out of work completely. They also found apprenticeships and traineeships very difficult to come by, and this had particular significance for young men who tend to take up apprenticeships more than young women.
On the other hand, a marked increase in young people’s educational participation during the last 20 years does seem to have provided some protection when times are tough. Education gives young people more options and opportunities, and for those in the 20 to 24 year age group the number undertaking full-time study rose as a result of the downturn. In fact, numbers in this group have grown steadily since the 1980s: from 10% in 1986 to around a third in 2009. There has also been an increase in the number of full-time students who work as well as study.
Another trend in recent years has been to combine study with part-time work. For example, in 2009 one third of school students worked as well as studying. This trend reflects the changing nature of the Australian workforce, and employers’ need for flexible, casual workers. However, during the downturn the rate for young people combining work and study fell, because the competition for part-time work was so great from those unable to find full-time work. This was especially the case for young men.
Australia’s recent downturn was not as severe as elsewhere. Its impact is, however, still being felt by those who became long-term unemployed. Fortunately, the structure of the labour market and the increase in those going onto post-compulsory education, means that the majority of young people were able to stay engaged and on track towards building their skills and a career.
Young people in an economic downturn is available at www.lsay.edu.au/publications/2350.html