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As Australia achieves its lowest unemployment levels for more than ten years, this report focuses on the status of young people in these favourable labour market conditions. The report examines three key indicators of the participation of young people in employment, education and training in Australia: the proportion of young people aged 15-19 years not in full-time education and not in full-time employment; the ratio of the unemployment rate among 15-24 year olds to the unemployment rate among 25-54 year olds; and the proportion of the population aged 20-24 years who have completed Year 12 or a postsecondary qualification. The report is based on Australian Bureau of Statistics (ABS) and Organisation for Economic Co-operation and Development (OECD) data and updates to the year 2000 the indicators proposed in 'Australia's youth: reality and risk' (1998) and 'How young people are faring: key indicators 1999'. Although the analysis demonstrates a decrease in the proportion of young people 'at risk' in the labour market over the last decade, a significant number of young people attempting to enter full-time work still face difficulties, particularly early school leavers.