Youth Employment Strategy: action started to address crisis of youth joblessness

In this Budget, we are pleased to see the Abbott Government has begun to take necessary steps to tackle the steep challenge that youth unemployment poses to our nation and neighbourhoods.

The modern economy, with its demands for skills and education as never before, has crushed the hopes of more than a quarter of a million unemployed youth. In April, more than 58,000 of 15 to 24 year olds were deemed long term unemployed – that is, unable to find work for more than a year. This is bad for our young people and bad for our economy which must tap the productive potential of all workers to forge ahead as the population ages.

The Brotherhood of St Laurence has been pushing for policy action on youth unemployment, a problem which has only escalated since the Global Financial Crisis.

Measures in the new Youth Employment Strategy, including provision for work experience while on income support and intensive interventions for highly disadvantaged young job seekers, appear to tick many of the boxes required, Brotherhood of St Laurence executive director Tony Nicholson said. "Funding of $212 million over four years for community organisations to deliver intensive support to young people aged 15 to 21 at risk of long term unemployment also correctly recognises the value of locally based solutions."

As the Treasurer has acknowledged in his Budget speech, "the level of youth unemployment in Australia is too high". But a real hurdle for these new steps is how they are implemented. We need to move away from top-down bureaucratic solutions and harness the local community effort and the goodwill of local employers. "Based on our practical experience working with young jobless in youth unemployment hotspots we know that young people today need strong supports in a much tougher labour market to gain even entry level jobs.

"Warning on making young people wait 4 weeks for income support Mr Nicholson also welcomed the government's move away from last year's radical approach to withdraw benefits from under 30s for six months at a time. But he warned new plans to impose a four week waiting period for income support on many under 25 jobseekers risks harsh unintended consequences for some, especially those who did not have family support. "It is not due to perceived failings of young people today that we find so many unemployed in our prosperous nation," he said.

“Framing policies for the future challenges that Australia faces must recognise that while our modern economy offers opportunities for us all, it also comes with new risks – especially for disadvantaged people. "Acknowledging this reality goes to the fairness we value as Australians," Mr Nicholson said.

MEDIA CONTACT:
Communications Manager Deborah Morris, 0450 784 847 , dmorris@bsl.org.au