Yesterday’s ABS labour force release for July revealed a deteriorating Australian youth labour market – i.e. those aged 15 to 24 years old – with both full-time and total jobs growth falling and unemployment and underemployment rising.
The trend headline unemployment rate rose to 12.0%:
Total employment growth for those aged 15-24 years has dived:
Employment for those aged 15-24 years of age rose by 1.5% in trend terms in the year to June, below the 2.9% for the rest of the labour market.
Full-time jobs growth was 2.1% whereas part-time jobs growth was 0.5%, with both fading:
The recovery in youth labour force participation has accelerated but remains way below the pre-GFC experience, suggesting substantial hidden youth unemployment still exists:
Since the GFC hit 10-plus years ago, overall youth employment has risen by just 2.6% in trend terms, well below the 9.4% lift in the youth population over this time, and full-time jobs are down an incredible 16.8%. By contrast, the overall number of jobs for the rest of the labour force has risen by 23.2%, with full-time employment up 19.3%:
Youth underemployment rose to 18.0% in July, whereas underutilisation rose to 30.0%, with both near all-time highs:
In short, the youth labour market is weakening, which is a bellwether for the broader economy.