Climbing the jobs ladder slower: Young people in a weak labour market

Abstract

The 2008 Global Financial Crisis (GFC) and the end of the mining boom ushered in a downturn in the Australian labour market. Even though past downturns were marked by high unemployment, the unemployment rate post-GFC recovered quickly and remained low until the COVID-19 crisis in 2020. Instead, the weak labour market post-2008 was reflected in slow wage rate growth and in job seekers finding part-time work or work in less attractive firms or occupations (PC 2020). These trends were particularly noticeable for young people. Workers aged 20-34 experienced nearly zero growth in real wage rates from 2008 to 2018, and workers aged 15-24 experienced a large decline in full-time work and an increas..