An annual report of how young people are faring says that each year a substantial proportion of young Australians make a poor transition from school to further study and work. A paper based on the report How Young People are Faring 2005 was presented by Michael Long at the Monash University-ACER Centre for the Economics of Education and Training (CEET) National Conference in October.

Around 15 per cent of 15 to 19 year-olds are neither in full-time work nor full-time study. These young people were working part-time (7.2 per cent of 15 to 19 year-olds), looking for work (3.8 per cent) or not in the labour force (3.9 per cent). Many of these young Australians want to work or want to work more. In terms of numbers, there are 208 400 young people who are neither in full-time study or full-time work. They are likely to be experiencing difficulty in making a successful transition from secondary education and face a higher level of risk in the labour market over the long term than their counterparts who are fully engaged in education or training.

Completing Year 12 improves the transition for young people. School leavers who completed Year 12 in 2003 were more likely to be either studying (full or part-time) or working full-time in May 2004 than were young people who left school without completing Year 12. About two-fifths of young people who left school after completing Year 10 (45 per cent) or Year 11 (40 per cent) were not studying and either unemployed, in part-time work or not in the labour force. The corresponding percentage in these activities for young people who completed Year 12 (23 percent) is about half that of other school leavers.

While the number of full-time jobs has continued to grow for the older population, full-time jobs have not grown to the same extent for young Australians outside full-time study. As part-time work becomes a way of life for more young Australians, it may provide an extended stepping stone to full-time work. Equally, however, it may provide a poor foundation for future skill development or full-time engagement with the labour force. Australia has one of the highest levels of non student part-time employment among OECD countries.

This occurs against a background of an economy that has been expanding for at least a decade. Even though official unemployment has declined among young Australians, this improvement has been relatively greater for older Australians and in relative terms, younger Australians have proportionately higher levels of unemployment.

Governments at all levels have initiated policies and programs designed to improve the transition of young people from school to further study and work. Many of these programs, however, have only recently been introduced and their full effects may not be realised for several years or longer.

How Young People are Faring 2005 was released by the Dusseldorp Skills Forum on 17 November 2005 and is available on the Dusseldorp Skills Forum website.

Further information is available at Monash University-ACER Centre for the Economics of Education and Training (CEET) website.

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