Dynamics of the Australian youth labour market: the 1975 cohort, 1996-2000

This report examines the labour market dynamics between 1996 and 2000 of a cohort of young Australians born in 1975. During this period, most of the cohort were either in postsecondary education and training, or establishing themselves in the labour market. The first chapter reports on their major activity (full time study, full time work, part time work, looking for work and ‘other’ activities) for each year between 1996 and 2000 (when they were 21 to 25 years of age) and also presents the cohort’s participation in education and training and their occupational profiles. The second chapter examines the year-to-year movement between activities and occupational group. The remaining chapters look at full time work, unemployment and marginal activities (unemployment, part time work and other activities excluding domestic responsibilities), respectively. These three chapters provide a breakdown of the proportions of time the cohort spent in each activity. Subsequently, the relationship between time spent in the activity and a range of social background and educational labour market variables is examined. The third section examines the influences of qualifications and labour market experiences on the proportion of time spent in these activities. The report demonstrates the benefits of gaining full time employment early in the school-to-work transition. Experience of working full time has substantially stronger positive effects on the labour market outcomes of 21 to 25 year olds than completion of Year 12 or postsecondary qualifications and training. In terms of policy, the analyses indicate that governments should emphasise securing full time employment and the avoidance of unemployment for those young people who may be at risk of spending much of their time in marginal activities. The report also demonstrates that there is not a large homogenous group of young people excluded from full time work. There is considerable movement across activity states although full time is the most stable. The proportion of young adults who are engaged in marginal activities for long periods is relatively small being less than 10 per cent of the cohort. Show less