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Youth Unemployment Has ‘Scarring’ Effect – Report


Monday, 20th July 2015 at 12:13 pm
Xavier Smerdon, Journalist
Relationships are more likely to suffer if a man loses his job than if a women does and extended periods of youth unemployment can have a “scarring” effect, according to a comprehensive annual survey.

Monday, 20th July 2015
at 12:13 pm
Xavier Smerdon, Journalist


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Youth Unemployment Has ‘Scarring’ Effect – Report
Monday, 20th July 2015 at 12:13 pm

Relationships are more likely to suffer if a man loses his job than if a women does and extended periods of youth unemployment can have a “scarring” effect, according to a comprehensive annual survey.

The Household Income and Labour Dynamics in Australia (HILDA) Survey, produced by Melbourne University and funded by the Department of Social Services, found that married couples viewed female employment as less important than male employment.

In fact, the report found that men were more satisfied when their female partners did not work.

“The labour force status of both oneself and one’s partner also impact on relationship satisfaction, with unemployment of the man negatively impacting satisfaction of both members of the couple, and unemployment of the woman negatively impacting on her own relationship satisfaction (but not her partner’s satisfaction),” the report said.

“Interestingly, employment – particularly of the female partner – is also a negative factor (compared with being out of the labour force) for relationship satisfaction of both men and women.”

The report also found that extended periods of unemployment during the ages of 15 to 29-years-old, could have a “scarring” effect.

“The early years in the labour market following completion of full-time study are generally thought to be critical to longer-term labour market outcomes,” the report said.

“Extended periods of unemployment in these formative years can potentially have long-term ‘scarring’ effects that further undermine future prospects for employment and wage growth.”

Minister for Social Services, Scott Morrison, said the findings of the survey, which has been conducted every year since 2001, lended support to the Government’s plans to tackle youth unemployment.

“The (survey) released today supports the Abbott Government’s commitment to support young people by helping them be job ready, find work and stay in a job,” Morrison said.

“We want to help young people realise their potential rather than spend a lifetime on welfare.

“For people of working age the number of income support recipients dropped from 37.7 per cent in 2001 to 30.6 per cent in 2009, according to the HILDA survey. Beneficiary payments were so low in 2009 as a result of the strong employment growth experienced under the Howard Government.”

Morrison said the Government’s new jobactive programme would help link job seekers to employment opportunities in their local area.

The jobactive program has been largely welcomed by the Not for Profit sector as a way to drive youth employment.

Job Services Australia and CEO of Jobs Australia, David Thompson, said earlier this month that it features more flexibility for providers to innovate and design their own services, while also increasing the emphasis on working with employers to generate more employment outcomes for disadvantaged job seekers.


Xavier Smerdon  |  Journalist |  @XavierSmerdon

Xavier Smerdon is a journalist specialising in the Not for Profit sector. He writes breaking and investigative news articles.

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