Even before the pandemic the job market was difficult for young workers. Credit: Janie Barrett. Then the pandemic arrived and disproportionately disrupted the service industries where most young Australians were employed including hospitality and retail. Meanwhile, other obstacles, especially high housing costs, have made the transition from school to independence much more difficult. The pandemic has dealt them another blow. New research by Melbourne University economists Jeff Borland and Michael Coelli underscores how miserable the past decade has been for young workers.
Between and the share of people aged with a job fell by 4. Those poor outcomes really matter. The immediate wellbeing of the young is adversely affected by having a lower income.
Of course, the problem of youth unemployment and underemployment is not new. Politicians have come up with a standard response: more skills training.
But young Australians have already got that message. An effective public health response and adherence to stringent lockdown measures minimised the transmission of the virus in the community. The result was that Australia was less hard hit economically than other countries.
Our GDP was 2. This decline was far smaller than the average rate of In financial terms, Australia remains rock-solid. Australia is home to just 0. Notes: 1. The start of brought huge challenges for Australia. The Government acted quickly to close borders and contain the pandemic. The Australian health system coped with infections and the government supported businesses and the livelihoods of Australian workers. Australian GDP was 2. This decline was far smaller than the average rate of —4.
Gross domestic product constant prices. Few countries achieved both. Australians are a third richer than New Zealanders. This difference is remarkable given that the two countries enjoyed the same level of income for most of the twentieth century. From the s onwards, both countries were hit by economic shocks, recession, bad policy, and painful reforms, yet Australia has pulled through this period in much better shape than New Zealand.
The income gap is stubborn and shows no sign of closing. Australia has not moved closer to the rest of the world over the last thirty years, and nor has New Zealand moved further away. In any event, natural resources are no guarantee of growth. The big difference between the countries is labour productivity. Australian workers produce a third more wealth for every hour worked, largely because they have more capital machinery and technology to work with.
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