Policy context

Youth unemployment is an important wellbeing indicator as the consequences of youth unemployment are far-reaching. Poor employment outcomes, especially early in a young person’s life, negatively impact a person on both a personal and societal level. Joblessness not only results in income loss but also diminishes future job opportunities, mental wellbeing, and social inclusion, both in the short and long term. At the macroeconomic level, unemployment imposes fiscal costs on governments and also reduces tax revenue and output.¹

With regard to youth unemployment, the COVID-19 pandemic disproportionally impacted young Australians aged 15 to 24. While comprising only 14% of the workforce, they endured a significant 55% share of job losses during the lockdowns of 2021.²