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School leavers can do well in the workforce

Many early school leavers progress well in the first few years after leaving school, according to the latest report from the Longitudinal Surveys of Australian Youth (LSAY). The findings question the widespread belief that students who leave school before Year 12 struggle to make a successful transition to the workforce.

The large-scale national study compared the post-school experiences of students who did not complete Year 12 (non-completers) with those who completed Year 12 but did not enter university (completers).  

The study is based on recent data on the post-school outcomes of a group of almost 8000 young Australians who were in Year 9 in 1995. Their transitions from school to work were followed annually until late 2000, when most of the participants were 19.

Of the young people in the 1995 Year 9 cohort, 9 per cent left school on or before the completion of Year 10 ( early school leavers ) and a further 13 per cent left before the completion of Year 12 ( later school leavers ). Seventy-nine per cent of the cohort remained in secondary school until the end of Year 12 ( completers ). Around 40 per cent of the students who were originally surveyed in Year 9 in 1995 completed Year 12 and went on to higher education. At the time that the data collection for this study was completed in 2000, those young people were engaged in higher education and were therefore not included in the analysis of post-school outcomes conducted for this report.

The findings show that there are both positive and negative outcomes for school non-completers in the early post school years. Unemployment rates were higher for non-completers. However, those non-completers who had successfully gained employment were more likely to be working full-time, received higher earnings, displayed greater job stability and reported being in the type of job they would like as a career.

A large majority of school non-completers left school for positive reasons such as a desire to secure an apprenticeship or other employment. This was the case with over three quarters of the study's participants. A small minority of participants, six per cent, opted out of school for reasons such as performing poorly in school, not enjoying school or being dissatisfied with the courses offered by their school.

The report also noted that disengagement from school is not the same as disengagement from education. In the year after leaving school, around half of all non-completers were engaged in some form of education or training. Apprenticeships were found to provide an important pathway between school and the workforce and reduced the risk of unemployment for school non-completers by half.

One likely explanation for the advantages experienced by some non-completers is the additional time spent in the workforce. In late 2000, the majority of the completers in the sample had been out of school for two years and non-completers had been out of school for up to five years. Having spent more time in the workforce, non-completers had gained more work experience than completers and therefore had advantages in competing for jobs and in achieving higher incomes. The 1995 Year 9 cohort was also making the transition from school to work in the late 1990s and benefited from the improved, post-recession economic conditions.

The study shows that it is not all 'doom and gloom' for school non-completers. They face a number of advantages over their former classmates who did complete Year 12. There are some areas of concern including higher unemployment, especially for those who do not have an apprenticeship.   It must also be remembered that this study takes a small, five-year snap shot of the lives of this group of young Australians. Most were only 19 at the end of this particular study. More research will be required at a later day to determine if the economic advantages experienced by some school non-completers in the early post-school years will be maintained in long-term.

The report, School Leavers in Australia: Profiles and Pathways by Dr Julie McMillan and Dr Gary Marks, is research report number 31 in the Longitudinal Surveys of Australian Youth (LSAY) research program jointly managed by ACER and the Commonwealth Department of Education, Science and Training (DEST).

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