The economic downturn has left a legacy of young people facing a future without secure work. Teenage unemployment (15-19 year olds) has hit 30% in 17 regions around Australia, peaking at 52% in North Western Melbourne, says an ACOSS report released today.

Youth welfare organisations say the global financial crisis has left teenagers at high risk of being locked out of the workforce if they are not able to access employment programs that are individually tailored to help them find a job.

Victoria and New South Wales have the highest average teenage unemployment rates in the country at 29% and 26% respectively. The ACOSS report outlines strategies to help young people move back into work including a voluntary relocation program, a stronger compact with young people, and improved income support.

Speaking at Melbourne City Mission this morning, Dr Cassandra Goldie, CEO, ACOSS said:

“We call on political parties this election to recognise the high levels of unemployment among teenagers and to strengthen schemes to assist young people into work, such as targeted work experience and training.

“The Government’s Compact with Young People, which guarantees education and training for young unemployed people, is the right approach but there are gaps in the Compact such as work-based training and mentoring, and help with relocation.

“‘Get-tough’ measures, such as time-limited payments, or forced relocation schemes would hinder, not help, young unemployed Australians.”

Major Brad Halse, Communications Director, The Salvation Army Australia (Southern Territory) said:

“We are very concerned at the high levels of young people without work. Most young unemployed people come from low-income backgrounds and their families have very limited resources.

“It is important young people are engaged with the workforce because a lack of paid work impacts on their health, welfare and relationships.”

David Thompson, CEO, Jobs Australia said :

“Employment services have a key role to play in assisting young people into work but many services are under-funded and do not have the resources to provide individual attention.

“For example, they are paid just $500 per person to assist long-term unemployed people to train and move back into work.”

Policies to assist young people into work include:

1. Strengthening the Compact with Young Australians

The guarantee of training places for young unemployed people should include more training linked to work experience, and all early school leavers on income support should have access to individual guidance and support to choose the right course and complete it.

2. A voluntary relocation scheme

This voluntary scheme would help jobless people in areas with high unemployment move to areas with better job opportunities, including job placement, help with the move and accommodation and other supports at the new address.|

So that Government funds are not wasted, assistance should be targeted to unemployed people whom their Job Services Australia provider identifies as unlikely to get a job without such help. Young unemployed people are taking a risk in moving away from family and other supports, usually to a place where housing costs are much higher, so relocation should not be compulsory. It is also more likely that the move or the job will fall through and public funds will be wasted, if people are forced to relocate.

3. Improve income support

The maximum single rate of Newstart Allowance and other allowance payments should be raised by $45 per week.

Since last year’s pension increase did not extend to unemployed people, the gap between Newstart Allowance and the pension, which only provides a frugal living standard, is now $120 per week. Youth Allowance is $42 a week less than Newstart Allowance. Basic living costs are much the same for people of all ages: there are no ‘youth discounts’ on rents, food or groceries.

Media Contacts:
Clare Cameron, ACOSS – 0419 626 155
Major Brad Halse, The Salvation Army Australia Southern Territory – 0417 537 950
David Thompson, CEO, Jobs Australia – 0419 527 753