The most recent unemployment figures have revealed a problem with youth unemployment that has for the most part been hidden by the traditional “youth unemployment” rate.
The June labour force figures released by the ABS last week showed that the unemployment rate for 15-24 year olds (the standard definition of youth unemployment) was 11.7% (in trend terms), slightly below where it was this time last year. For 15-19 year olds it is 15.6% – more than one percentage point lower than the 16.7% of June 2012.
So the rate is coming down. Cigars all round?
Last week we noted that the unemployment rate hides important details; this is magnified when it comes to youth unemployment. What has been noticeable of late is the unemployment rate of those looking for full-time work has surged, while the overall rate has stayed flat or declined.
There is now a bigger gap between the two rates than at any time in the past 20 years:
And yet despite this there is actually a smaller percentage of youth looking for full-time work than there was during the height of the global financial crisis.
So what is going on?
There are two issues: participation and jobs.
via The Guardian
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