A new paper issued by the Productivity Commission (PC) has looked at ‘scarring’ in the job market in the 10 years after the global financial crisis (GFC).
The report shows that young people found it harder to secure employment in occupations they aspired to during that period. If they started off in a less appealing occupation, the Commission found it was harder for them to “climb the occupation ladder” than before the GFC:
This paper investigates labour market scarring that might have occurred over the period 2008 to 2018 — specifically whether young people entering the labour market during and following the GFC had a harder transition into employment than those entering earlier, and whether that experience could have longer term impacts on the labour market outcomes for this cohort.
