Youth Unemployment

The ABS estimates the number of unemployed youth in each month and releases trend data and seasonally adjusted data. The levels of youth unemployment fluctuate throughout the year, especially around peak educational periods. Therefore, trend data and seasonally adjusted data are recommended for analysis of youth unemployment. In addition, the annual average is recommended for comparisons.

Impact of youth unemployment on economic growth

The impact of youth unemployment on economic growth can be measured in two ways. One way is in the employment ratio, which shows the percentage of young people working compared to the total number of workers. This ratio has fallen over the last decade. It peaked in 2000 at 72.9 percent. Today, it stands at 60.8 percent.

The other way is in the participation rate. For example, the participation rate of young men is 53.9 percent while it is 37.3 percent for young women. These two measures show that unemployment is higher among young women than among young men in nearly every region of the world. For example, the unemployment rate for women is double that of young men in the Arab States and Northern Africa. This disparity is particularly pronounced in these regions. Moreover, female youth participation rates are significantly lower in Northern Africa and Southern Asia.

Furthermore, high youth unemployment has long-term economic consequences. It creates additional costs for taxpayers and increases the likelihood of crime, increased welfare payments, and higher costs for public health care. One recent study by the White House Council on Community Solutions estimated the total lifetime cost of youth unemployment at $1.6 trillion.

In addition to direct costs, youth unemployment has several indirect effects. For example, it increases the risk of emigration, lowering the competitiveness of a country. Furthermore, youth unemployment causes a sense of disenfranchisement that contributes to anti-social behavior.

Effects of youth unemployment on wages

Youth unemployment affects young adults in many ways. It lowers their wages, and can impact their health and psychological wellbeing. Unemployment can also affect a person’s social networks. Youth may also become less optimistic about the future if they are unemployed. This lack of optimism can also affect a person’s personality and social networks.

The effects of youth unemployment on wages can last throughout a person’s career. On average, a young person who is unemployed for six months can expect to earn nearly $22,000 less over their lifetime. In the United Kingdom, researchers found that the unemployed youth earned 13 percent to 21 percent less than their peers 20 years later. The same holds true in the United States, where a study of young men who graduated during the recession found that they earned an average of six to seven percent less than their peers.

One way to mitigate the negative effects of youth unemployment is to raise the minimum wage in the United States or in EU member countries. These policies encourage employers to hire young workers and train them to meet those wages. However, the effects of raising the minimum wage on employment rates of young adults are not as strong as those of adult workers.

Increasing the minimum wage for young people decreases youth unemployment by about three percent, but does not affect the employment rate of adults. While higher minimum wages benefit some youths, many others will not find jobs. While some youths will be able to find jobs, many others will not, and their lifetime income will be significantly lower. A more equitable option is to provide cash assistance and limited on-the-job training.

Effects of youth unemployment on education

The Great Recession has brought increased attention to the challenges faced by young people during their transition from adolescence to adulthood. Historically, unemployment rates for young people during this period are higher than for older workers. These trends are particularly troubling because young people are transitioning from school to full-time employment, which is critical to their future self-sufficiency.

Unemployment among youth can be especially difficult to bear if family support is absent. In Mexico, for example, nearly half of all Generation-program students live with multiple family members. In the U.S., 26% of young people are living on their own. In Mexico, the percentage of single-dwelling youth is lower, but it remains an important point to consider. Mexico is a middle-income country and tends to have higher percentages of thriving adults than U.S. youth.

The research involved a mixed-method approach to collect data. A self-structured questionnaire was used to collect quantitative and qualitative information from the respondents. It asked questions about perceptions of education, students’ productivity, and the quality of education. Additionally, in-depth interviews were conducted with respondents who were uniquely qualified to give information about their experiences. This qualitative data was analyzed through verbatim quotations and content analyses.

A bivariate analysis found that low educational attainment, poor health, and poor self-rated health were associated with high unemployment among youth. The strongest associations were found between school achievement in adolescence and youth unemployment, and these associations were more pronounced among youth with low school achievement or low education attainment. The study also found that a lack of parental education was associated with high unemployment rates among youth.