It is well-established that recessions hit young people the hardest.
We saw it in our early 1980s recession, our early 1990s recession, and in the one we are now entering.
The most dramatic divergence in the fortunes of young and older Australians came in the mid 1970s recession when the unemployment rate for those aged 15-19 shot up from 4% to 10% in the space of one year. A year later it was 12%, and 15% a year after that.
Unemployment rates 1971-1977
- ^ payroll data (www.abs.gov.au)
- ^ ABS 6203.0 (www.abs.gov.au)
- ^ subjective well-being (positivepsychology.org.uk)
- ^ There's a reason you're feeling no better off than 10 years ago. Here's what HILDA says about well-being (theconversation.com)
- ^ HILDA (melbourneinstitute.unimelb.edu.au)
- ^ Regressions available upon request (melbourneinstitute.unimelb.edu.au)
- ^ The next employment challenge from coronavirus: how to help the young (theconversation.com)
- ^ Year 12 retention rate (www.abs.gov.au)
- ^ university enrolments (www.education.gov.au)
Authors: Jenny Chesters, Senior Lecturer/ Research Fellow, University of Melbourne