Young Aussies will bear brunt of coronavirus employment shock

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Although older Australians are much more likely to die from the coronavirus, the pandemic will have a major impact on the future income and career prospects of many younger people. A recent study by Reserve Bank of Australia economists Zoya Dhillon and Natasha Cassidy found that while younger generations find it hard enough to get into the labour market during good economic times, this is even more so during a downturn, and they are also often the first to be laid off:

A recent study by two economists at the Reserve Bank of Australia, Zoya Dhillon and Natasha Cassidy, looked at labour market outcomes for younger people in Australia. With little work experience and often few job-specific skills, quite a few young people were found to struggle to secure a foothold in the labour market at the best of times.

When the economy turned sour, however, the impact fell disproportionately on young people as they failed to secure jobs and were often the first to be laid off.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.