Australia has long been proud of its reputation as the land of opportunity. We are a nation of people who embrace the ideal of a ‘fair go’.
However, for hundreds of thousands of young people, these principles ring less and less true. The current level of youth unemployment is a national disgrace.
Youth unemployment is at least double the national unemployment rate, and in some regions, is significantly more.
In real terms, this means almost one quarter of a million young Australians are out of work.
Let’s look at the figures.
The national youth unemployment rate sits at 12.3 per cent with another 20.2 per cent underemployed.
Because of a series of poor policy decisions, the number of people starting an apprenticeship has fallen by 100,000 – that is 40 per cent - over the last three years.
Young Australians should be given the opportunity to obtain the work skills and experience needed to get a start in the workforce.
Without immediate and effective action on youth unemployment, we risk consigning many young Australians to the fringes of the economy, with the added consequence of lasting damage to our future economic prospects.
We must give priority to policies that will make young people more competitive in the jobs market.
READ MORE
Internships life changing, PM says
The Youth Jobs PaTH program, announced in the Budget, is practical policy, specifically designed to deliver valuable work experience and real skills to young people who are struggling to secure employment.
We cannot turn our backs on young people and the PaTH program is exactly the sort of measure which opens up the world of work to them.
Unfortunately, opposition from the union movement runs the risk of derailing the value of the program.
Some facts: the work experience/trial phase is voluntary and short term – only 4 to 12 weeks.
It is open only to vulnerable job seekers – young people who have been trying unsuccessfully to secure a job for some time.
Young people will also be given a payment of $200 a fortnight in addition to their NewStart Youth allowance.
Young jobseekers are keenly aware that employers are seeking experience and they simply can’t obtain the skills needed unless someone gives them a go.
The reality of this measure means tens of thousands of young people will get their first opportunity in the workforce.
The Youth Jobs PaTH program is a better alternative to build real job experience than the current work for the dole programs.
This is why it is disappointing that critics from the union movement have sought to undermine the initiative.
This program is designed to give young people a go.
I urge unions to take a collaborative approach to work with business and the welfare sector in ensuring the success of the program.
The priority is addressing the scourge of youth unemployment. We can’t afford to get bogged down in partisan, ideological arguments.
The Australian Chamber has been a strong advocate for an approach that gives real skills and real work experience to young people who find it difficult to obtain work. We will continue to do so, throughout the federal election campaign, and beyond.
We call on the union movement to join business and well-informed community groups in getting serious about tackling youth unemployment.
James Pearson is the Australian Chamber of Commerce and Industry CEO.
