19 September 2008

How Young People are Faring 2008

Context

o 2008 Education Budget paper reports that 3 to 6 per cent of

young Australians experience a poor transition from school

o HYPAF provides the most up-to-date analysis of transition

o How many struggle in transition?

o Who struggles to make a smooth transition?

o New Training and Reform Agenda

o Target of 90% school completion by 2020

o How far to go?

Earning And Learning Among Teenagers

15 to 19 year-olds

Earning and learning activities of teenagers

Source: ABS Labour Force Australia (2008)

Most teenagers are in full-time education or full-time work

Source: ABS Labour Force Australia (2008)

Proportion of teenagers not earning or learning

has been falling

Matched by increased participation in education & training, including school, but

not by an increase in full-time employment

13% of teenagers are not in full-time education

or full-time work

o Females are more likely than males to be in full-time

education.

o Among those not in full-time education, females at greater

risk than males of being unemployed, in part-time work or

not in the labour force.

Not earning or learning at age 19:

levels vary by state/territory

Source: ABS Census of Population and Housing (2006)

Not earning or learning at age 19 is associated

with school achievement

Source: LSAY 2003 cohort

Earning and learning at age 19 varies by location

Source: ABS Census of Population and Housing (2006)

Earning And Learning Among School Leavers

Earning and learning activities of school leavers

Source: ABS Labour Force Australia (2008)

Year 12 completion important to success in

first year out

o Not in full-time work or full-time education in year after leaving school:

o 21% of Yr 12 completers

o 47% of early school leavers

Year 12 is important when entering the

labour market

Source: ABS Education and Work, Australia (2007)

Transition activities vary by gender

o Female school leavers more likely to enter higher education

o Males more likely to be in VET, apprenticeships, and full-

time work

o Females more likely to be in marginal activities, such as

part-time work or not being in the labour force

Marginal attachment to the labour force falls

as SES rises

Source: Estimates derived from LSAY 98 cohort by Stephen Lamb

Earning And Learning Among Young Adults

20 to 24 year-olds

Earning and learning activities of young adults

Source: ABS Labour Force Australia (2008)

Not in labour

force

7.6%

Seeking work

3.9%

Full-time work

50.2%

Full-time

education

28.4%

Part-time work

9.9%

Proportions of young adults not in full-time

education or full-time work have been falling

Source: ABS Labour Force Australia (2008)

Falls over the past decade have corresponded with a rise in full-time

education but not in full-time work

Those from high SES backgrounds are more

likely to be in full-time education

Source: Estimates derived from LSAY 98 cohort by Stephen Lamb

Young women at greater risk of marginalisation

o While levels of less than full-time engagement have been falling for both males and females, young women continue to be at greater risk of marginalisation than young men (26% vs 17% in 2008)

o Young women more likely than young men to be working part-time, or not in the labour force, while men more likely than women to be unemployed

Educational Attainment

2006 Census: 71% of 19 year-olds & 75% of 24

year-olds had attained Year 12 or equivalent

Source: ABS Census of Population and Housing (2006)

Some gains since 2001

19 years 24 years 20-24 years

2001 2006 2001 2006 2001 2006

% % % % % %

New South Wales 66.7 70.4 73.5 74.6 71.6 73.8

Victoria 67.7 74.4 75.6 78.3 74.2 78.2

Queensland 71.5 73.6 72.8 74.5 72.6 74.6

South Australia 62.5 66.2 69.3 71.5 67.9 70.6

Western Australia 65.1 68.6 69.8 71.3 69.0 71.2

Tasmania 56.8 62.0 59.6 67.2 59.6 67.2

Northern Territory 34.5 41.1 52.1 52.0 48.1 47.2

ACT 78.1 81.2 83.4 84.9 83.4 84.2

Australia 67.0 71.3 72.8 74.8 71.6 74.4

Source: ABS Census of Population and Housing (2001 and 2006)

Attainment of Year 12 or an equivalent post-school qualification (Cert III or above) (%)

National figures mask state differences

Still some way to go

o To achieve 90 per cent attainment by 2020 will require nationwide improvement at double the rate measured between the 2001 and 2006 census

o Some states and territories face greater challenges than others

o Policy and funding must be targeted appropriately

Social disadvantage promotes lower rates of

attainment among some groups of young Australians

Source: ABS Census of Population and Housing (2001 and 2006)

Achievement, attainment and social background

related

o Achievement levels in school affect attainment

o School achievement is highly correlated with social

background

o Policies aimed at improving Year 12 completion need to

address the issue of social disadvantage

Australia’s attainment levels reveal room to

improve based on international standards

o International comparison of levels of upper secondary attainment for 25-34 year-olds places Australia at about the average for OECD countries

o Substantially lower than Korea, Sweden, US, Canada, NZ, Finland and Hungary, among others

o Some evidence suggests that countries which offer more extensive, well-structured VET programs do better in promoting rates of school completion

Improving VET may lead to increased school

completion

Some countries doing better than Australia do VET differently

Source: Lamb (2007)

Transition To The Labour Market

Declining numbers seeking entry to the labour

force without study

Source: ABS Labour Force Australia (2008)

Very little full-time job growth in youth

labour market

o Fewer young people opting for the labour force rather than full-time education

o Yet, full-time employment rates for those wanting work have remained fairly constant

o This supports the view that full-time job opportunities for young Australians have fallen rather than grown over much of the last 15 years

Unemployment has fallen, but more part-time

than full-time job growth for young people

Labour force status of 15 to 19 year-olds not in full-time education

Source: ABS Labour Force Australia (2008)

Smooth pathways to full-time work more often

involve study & training

o 62% of Yr 12 completers and 58% of early leavers are in full-

time work in their 7th post-school year

o Of these:

o 88% of Yr 12 completers and 72% of early leavers

engaged in education and training at some time after

leaving school

o Only 3% of all Yr 12 completers and 6% of all early leavers

got a job immediately on leaving school and have been in

full-time work ever since

Source: Estimates derived from the Y95 cohort of LSAY by Stephen Lamb

Seven years on, early school leavers remain

disadvantaged

o Marginally attached to the labour force seven years after leaving school:

o 33% of early leavers

o 20% of Yr 12 completers

o Unemployed or not in the labour force in 7th post-school year and across most of seven-year period:

o 4.3% of early leavers

o 0.4% of all Year 12 completers

Conclusions

o 13% of teenagers and 21% of young adults are not engaged in full-time earning or learning

o Early school leavers are at greater and ongoing risk of labour force marginalisation

o Social disadvantage decreases likelihood of completing Year 12

o Much work needs to be done to meet new Year 12 completion targets by 2020

o Little growth in full-time employment opportunities for young people – more part-time work

o Smooth transitions more often involve education and training

Conclusions

o We have the right targets but much more needs to be done

in order to reach them…

19 September 2008

End