The majority of young Australians experience at least a short period of time outside of full-time education and the labour force in the early years after leaving secondary school, research has found. A report released by ACER in November 2005 identified the characteristics, activities and later destinations of young people who had spent time outside of the labour force. 

Annual interviews were conducted with a group of 10,700 young Australians who were tracked from 1997 (average age 16) until the end of 2003 (average age 22). It focused on a group of young people who were not in full-time education or the labour force, that is, they were not studying full-time, nor were they working or looking for work for at least one month during that time. The analyses were prompted by the concern that relatively little is known about young people outside of the labour force and how their experience affects their future employment or study prospects. 

The study found that spending some time outside the labour force and full-time education is a common experience and can generally be seen as part of the transition process from school to work or further education. However, there are some groups of young people for whom the experience of time outside the labour force and full-time education may be more disruptive.

Overall 64 per cent of the study’s participants spent some time outside the labour force and full-time education over the time they were surveyed. For the majority of these young people, their time spent outside the labour force was relatively short, between one and three months, after which they moved back into the labour market or full-time education with little apparent difficulty. Most saw their state as temporary and planned to enter full-time education or look for employment in the near future.

Those more likely to report extended periods of time outside the labour force and full-time education included young people who had not achieved highly at school, did not have a Year 12 certificate, were female, or who had a health problem or disability. In contrast, characteristics associated with not spending any time outside the labour force and full-time education included high achievement at school, coming from a family in which both parents had a degree or diploma, and not having left school prior to completing Year 12.

The activities undertaken by young people during a period outside of the labour force or full-time education varied between young men and women. Most young women who were outside the labour force and full-time education at the time of each annual surveys reported that they were caring for children or involved in home duties. Young men who were not studying full-time or in the labour force were involved in some other form of study or training in the early years, but in the later years tended to be on holiday or travelling.

The report concluded with a warning of possible serious implications for some young people who spend extended periods outside the labour force and full-time education. It warned these young Australians may be missing out on employment experience, the development of work skills and familiarity with new technologies, all of which appear to decrease their chances of finding employment in the future.  It cautioned young Australians who find they are not achieving well at school against leaving without a qualification as they may find themselves in a labour marked with few openings for young people without formal qualifications. Their chances of entering the labour force or full-time education appear to decline even further as time passes. The challenge for future research and policy development lies in identifying early on those young people for whom spending time outside the labour force and full-time education is a negative experience that may lead to further disadvantage over time and develop strategies aimed at helping these young people make a smooth transition from school to further education or employment.  

Further information and additional findings are available in the report, Young people outside the labour force and full-time education: activities and profiles by Kylie Hillman. The study is research report number 45 in the Longitudinal Surveys of Australian Youth (LSAY), a program conducted jointly by ACER and the Australian Government Department of Education, Science and Training (DEST). Download the report.

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