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A slowing economy could mean higher youth unemployment, economist warns

A slowing economy could mean higher youth unemployment, economist warns

Australia's youth unemployment rate was 11.1 per cent in September and economists say a slowing economy could mean it rises further in coming months.

Economists are watching to see if youth unemployment rises further as the economy softens.

Young people are increasingly competing with multiple job holders for work.

University students are being encouraged to engage with the job market well before they graduate.

Young people struggling to find work can be the canary in the coal mine for the rest of the jobs market.

And a recent rise in the youth unemployment rate could be a sign of things to come.

Australian Bureau of Statistics data from September showed youth unemployment at 11.1 per cent compared with the overall unemployment rate of 4.7 per cent.

While still lower than before the pandemic, a slowing economy could mean youth unemployment rises further in the coming months.

"We tend to see younger workers affected more heavily when there is a slowdown," chief economist at jobs website SEEK, Blair Chapman, said.

Commonwealth Bank economist Harry Ottley said the youth unemployment rate was "definitely rising more quickly than other cohorts".

Lachlan Riddell has experienced what he describes as "job hunting depression".

"I started to fall into a bit of a slump, [asking myself], 'why am I even doing this'," he said.

The 24-year-old estimated he had applied for hundreds of jobs over the past three years, from collecting supermarket trolleys to retail and hospitality roles.

In brief

Economists are watching to see if youth unemployment rises further as the economy softens. Australian Bureau of Statistics data from September showed youth unemployment at 11.1 per cent compared with the overall unemployment rate of 4.7 per cent. While still lower than before the pandemic, a slowing economy could mean youth unemployment rises further in the coming months. Commonwealth Bank economist Harry Ottley said the youth unemployment rate was "definitely rising more quickly than other cohorts".

This is the opening of the story, shared with credit to ABC News Australia. The rest of the report — with every detail — continues on the publisher’s website.

Continue reading at ABC News Australia ↗

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