Youth unemployment. Something to be worried about

A charity has highlighted the rise in youth unemployment in Tasmania as a grave cause for concern, and they are right in this. However youth unemployment in Australia generally is on the rise and we should not be too surprised. 

Below is the Australian unemployment rate and youth unemployment rate.

Notice the similar trends, but youth unemployment is around twice the national average. In Tasmania the youth unemployment rate is up to 20% in some areas.

The phenomenon of higher youth unemployment is one seen world wide. Newly qualified school and university leavers are at a huge disadvantage when unemployment is rising. Firstly they have no experience and so require expensive training, which makes them unattractive to employers. Secondly, and more importantly, when there is a downturn or slowdown in the economy firms reduce their recruitment activity, and the young are the very people who would fill those vacancies if they exist.

What tends to happen is that a year group or two miss out and a large proportion can't find work. When there is an improvement in the economy the people hired are the recent school leavers and graduates as those who have not worked for a year or two are treated with suspicion

by employers. "If they have not worked there must be a reason."

The result is that short turn youth unemployment can turn into long term unemployment for some. This is a significant and harmful cost of unemployment.

Having said this things are not as bad in Australia as they are elsewhere. British, US and Greek youth unemployment figures are shown below.

The ABC covers the story here