AUSTRALIAN YOUTH UNEMPLOYMENT: SNAPSHOT - March 2014 COUNTING THE COSTS BROTHERHOOD OF ST LAURENCE
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1 AUSTRALIAN YOUTH UNEMPLOYMENT: SNAPSHOT - March 2014 COUNTING THE COSTS BROTHERHOOD OF ST LAURENCE
2 AUSTRALIAN YOUTH UNEMPLOYMENT : March 2014 SNAPSHOT - COUNTING THE COSTS 1. INTRODUCTION Rising youth unemployment in Australia imposes a burden on the economy through both direct and indirect costs. The indirect costs are those associated with losing the valuable talents and potential of young people when they can t enter the workforce and the personal and broader social impacts that often follow unemployment. This snapshot examines some of the trends that are driving the direct costs of rising youth unemployment and canvasses some of the indirect costs. 2. THE TRENDS The recent rise in youth unemployment in Australia has led to s in the number of young people receiving unemployment benefits - Newstart Allowance and Youth Allowance (other than for students). For this summary, we only include Newstart recipients up to and including 24 years of age. The total number of recipients of Newstart and Youth Allowance (excluding students) has d 13.5 percent from 95,677 to 108,552 recipients. This is highlighted in Figure 1 110, , ,000 95,000 90,000 85,000 January 2012 January 2014 Figure 1: Under 25 years of age NSA & YA (excluding students) recipients (Source: DSS Labour Market and related Payments monthly profile, January 2013 & January 2014) In that two-year period, the number of young people aged receiving these allowances has d by 29percent, while the for those aged 21 to 24 years was 9 percent. This age breakdown is reflected in Figure 2. 02
3 AUSTRALIAN YOUTH UNEMPLOYMENT : March 2014 SNAPSHOT - COUNTING THE COSTS yrs Jan - 14 Jan yrs 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Figure 2: Under 25 years of age NSA & YA(o) recipients (by age) (Source: DSS Labour Market and related Payments monthly profile, January 2013 & January 2014) 3. COSTS TO ALL OF US The direct cost to the public purse lies primarily with the cost of unemployment benefits. Importantly, for too many young people the costs of unemployment tend to carry over much of their working years. This is known as the scarring effect - one of the key economic results of youth unemployment. Young people represent a tremendous opportunity to strengthen our productive capacity at a time when, with an ageing population, the proportion of people of working age is in decline. Neither the economy nor society can afford to leave large numbers of young people at the margins of the labour market, where they represent an avoidable dollar cost to public services and cannot contribute to national growth. The broader social impacts - that is, the indirect costs - of youth unemployment include those linked to d homelessness, poor health and social isolation. Rising youth unemployment not only affects the individual and their family but also leaves a lasting burden on our economy and community. 03
4 Appendix A YOUTH UNEMPLOYMENT MAPS TOP SPOTS FOR YOUTH JOBLESS SPIKES BROTHERHOOD OF ST LAURENCE
5 Map 1: Australia Percentage over 2 years to February Northern Territory 6 Queensland Western Australia South Australia 13 New South Wales Victoria Australian Capital Territory Tasmania TOP SPOTS FOR YOUTH JOBLESS SPIKES NATIONALLY 1. Cairns % 2. Moreton Bay North % 3. Sydney - Baulkham Hills and Hawkesbury % 4. Capital Region % 5. Northern Territory - Outback % 6. Western Australia - Outback % 7. Brisbane - West % 8. South Australia - Outback % 9. Barossa - Yorke - Mid North % 10. Western Australia - Wheat Belt % 11. Brisbane - South % 12. Tasmania - West and North West % 13. Far West and Orana % 14. Sydney - Parramatta % 15. Melbourne - Outer East % 16. Melbourne - Inner East Adelaide - West % 18. Sydney - Blacktown % 19. Ipswich % 20. Launceston and North East % 02
6 Map 2: New South Wales Percentage over 2 years to February % Murray 55.27% Far West and Orana Inset - Greater Sydney (see Map 3) 24.68% Hunter Valley excluding Newcastle 24.96% Newcastle and Lake Macquarie 18.35% Sydney Outer West and Blue Mountains 72.31% Capital Region 03
7 Map 3: Greater Sydney - NSW Percentage over 2 years to February % Sydney - Baulkham Hills and Hawkesbury 44.02% Sydney - Blacktown 48.15% Sydney - Parramatta 30.19% Illawarra 04
8 Map 4: Victoria Percentage over 2 years to February % Bendigo 20.14% Hume 35.65% Warnambool and South West 28.93% Geelong Inset - Greater Melbourne (see Map 5) 05
9 Map 5: Greater Melbourne - Victoria Percentage over 2 years to February % Hume 27.63% Melbourne - North West 46.23% Melbourne - Inner East 48.14% Melbourne - Outer East 25.63% Melbourne - Inner 18.01% Mornington Peninsula 06
10 Map 6: Greater Brisbane - QLD Percentage over 2 years to February % Moreton Bay - North 32.22% Brisbane - Inner City 27.71% Brisbane - East 67.58% Brisbane - West 60.68% Brisbane - South 42.95% Ipswich 07
11 Map 7: Tasmania Percentage over 2 years to February % West and North West 42.67% Launceston and North East 35.12% Greater Hobart 08
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