Yesterday’s ABS labour force release for August revealed a mixed Australian youth labour market – i.e. those aged 15 to 24 years old – with falling unemployment offset by a record rise in underemployment.
The trend headline unemployment rate fell slightly to 11.80% in August:
Total employment growth for those aged 15-24 years rose marginally in August, but has dived over the past year:
Employment for those aged 15-24 years of age rose by 1.5% in trend terms in the year to August, below the 2.7% for the rest of the labour market.
Full-time jobs growth was 1.6% whereas part-time jobs growth was 1.0%, with full-time jobs 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 16.9%. By contrast, the overall number of jobs for the rest of the labour force has risen by 23.3%, with full-time employment up 19.1%:
Youth underemployment rose to a record high 18.4% in August, whereas underutilisation rose to a near record high 30.2%:
In short, the youth labour market remains way oversupplied, despite the latest fall in headline unemployment.