Evaluation of the Australian Wage Subsidy Special Youth ...

Evaluation of the Australian Wage Subsidy Special Youth ... Evaluation of the Australian Wage Subsidy Special Youth ...

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64 Table 2.10 Average duration of unemployment (number of weeks) by age, August 1981- 1990 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 15-19 25 23 32 29 29 30 33 28 26 23 20-24 32 32 42 46 46 43 41 46 34 33 25-34 31 28 40 45 50 43 45 53 37 40 35-44 38 40 44 55 50 57 52 54 56 57 45-54 56 52 56 61 73 85 82 71 80 60 55-59 69 46 63 79 86 89 86 115 84 99 60-64 83 58 60 67 123 98 121 91 107 126 Source: Sheen and Trethewey (1991) citing unpublished data ABS Cat 6203.0 Labour Force Australia. Analysis of unemployment by educational attainment in February 1991 also found that the unemployment rate was clearly higher for those with less formal education, especially young people. 40 It was noted that unemployment rates for those 20-24 who did not finish schooling to year 12 was 20 per cent, which was about twice that of those who did finish schooling. Overall, the observed youth unemployment rate was 23 per cent for those 15- 24 years without schooling to year 12. Ross (1988) usefully examined in detail the relative performance of teenagers in the labour force across the period 1983-1988. The distribution of labour force activities for teenagers and the total working age population for Australia can be seen in Table 2.11. Teenagers had different activity patterns to the rest of the working age population in general. Ross (1988) points out that for teens, while employment rose across the period, and unemployment fell, their labour force participation had changed. Particularly for male teens there was a rise in the school participation rate, and Ross (1988) made clear the change to the education and employment decision was an important aspect of the teen labour market over the period. A breakdown in employment showed that full-time employment for teens fell, due to a decline in female employment, and part-time employment rose around 60 per cent for teens (Ross (1988): 4). It was found that school student’s labour force participation had risen, and while employment 40 EPAC (1992) p 14 Chart 1.7 and citing ABS CAT 6235.0 Labour force states and educational attainment, Australia February 1991.

65 for teens overall had risen, employment rose most for school students, whose employment was mostly part time 41 averaging 4-6 hours a week – the Saturday job effect (Ross (1988): 11). Ross (1988) found the most suitable interpretation was that employers were placing greater reliance on casual and part-time labour while teens were aware of lack of experience and qualifications affecting employment chances. Thus, teens were remaining in school longer, and accepting part-time employment as a first-step to full-time employment, which gave work-experience. The growth in in-school employment was interpreted as an attempt to combine work experience with higher educational attainment. Stricker and Sheehan (1981) and Merrilees (1981), in commenting on the rise in schooling participation, noted that those who wanted a job but were unable to find one could remain in school, and the state of the youth labour market had thus affected schooling rates. 41 Fulltime employment was defined as 35 hours or more per week, with part-time less than 35 hours per week.

64<br />

Table 2.10 Average duration <strong>of</strong> unemployment (number <strong>of</strong> weeks) by age, August 1981-<br />

1990<br />

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990<br />

15-19 25 23 32 29 29 30 33 28 26 23<br />

20-24 32 32 42 46 46 43 41 46 34 33<br />

25-34 31 28 40 45 50 43 45 53 37 40<br />

35-44 38 40 44 55 50 57 52 54 56 57<br />

45-54 56 52 56 61 73 85 82 71 80 60<br />

55-59 69 46 63 79 86 89 86 115 84 99<br />

60-64 83 58 60 67 123 98 121 91 107 126<br />

Source: Sheen and Tre<strong>the</strong>wey (1991) citing unpublished data ABS Cat 6203.0 Labour Force Australia.<br />

Analysis <strong>of</strong> unemployment by educational attainment in February 1991 also found that<br />

<strong>the</strong> unemployment rate was clearly higher for those with less formal education, especially<br />

young people. 40 It was noted that unemployment rates for those 20-24 who did not finish<br />

schooling to year 12 was 20 per cent, which was about twice that <strong>of</strong> those who did finish<br />

schooling. Overall, <strong>the</strong> observed youth unemployment rate was 23 per cent for those 15-<br />

24 years without schooling to year 12.<br />

Ross (1988) usefully examined in detail <strong>the</strong> relative performance <strong>of</strong> teenagers in <strong>the</strong><br />

labour force across <strong>the</strong> period 1983-1988. The distribution <strong>of</strong> labour force activities for<br />

teenagers and <strong>the</strong> total working age population for Australia can be seen in Table 2.11.<br />

Teenagers had different activity patterns to <strong>the</strong> rest <strong>of</strong> <strong>the</strong> working age population in<br />

general. Ross (1988) points out that for teens, while employment rose across <strong>the</strong> period,<br />

and unemployment fell, <strong>the</strong>ir labour force participation had changed.<br />

Particularly for male teens <strong>the</strong>re was a rise in <strong>the</strong> school participation rate, and Ross<br />

(1988) made clear <strong>the</strong> change to <strong>the</strong> education and employment decision was an<br />

important aspect <strong>of</strong> <strong>the</strong> teen labour market over <strong>the</strong> period. A breakdown in employment<br />

showed that full-time employment for teens fell, due to a decline in female employment,<br />

and part-time employment rose around 60 per cent for teens (Ross (1988): 4). It was<br />

found that school student’s labour force participation had risen, and while employment<br />

40 EPAC (1992) p 14 Chart 1.7 and citing ABS CAT 6235.0 Labour force states and educational attainment,<br />

Australia February 1991.

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