How will the Federal Budget impact youth employment?



For the most part it is fair to say that most of us between the ages of 16-25 take little notice of the Federal budget and its implications on us as Australians. Now this could be a Gen Y thing or it could just be that all young people have better things to worry about, or at least we think we do.


Fact is there are elements of the Budget, which affect you and me, so we have to pay a little more attention to the detail. Being aware of certain cuts, benefits or strategies the government intends to put in place can give you a leg up.


Almost everyone knows what the Federal Budget is; the government essentially increases spending in certain areas or reduces spending in certain areas, with the money we as taxpayers pay to them. The issue of youth employment is constantly on the radar with many young people struggling to find work and therefore needing welfare payment. This topic is a difficult one as it often hard to put a finger on what the real problem is. Is it socio-economic status? Is it lack of appropriate funding? Essentially it is both these, and many more.


This Budget has seen the government revise their plan on the Youth Employment Strategy with the implementation of $331 million worth of spending on the issue. What does all this spending mean? It is a devised plan to decrease unemployment among youth by providing sufficient support. One of these support areas is welfare (Dole payments), originally slated by the government to have a six-month waiting period (this has now been scrapped to a one month wait for people to receive benefits). These payments are a necessity to many people in difficult socio-economic situations, needing them to essentially survive.


Also, community workers will now be paid to reach out to young people in high unemployment areas by providing them with support services such as case management, mentoring, as well as literacy and numeracy training. These services will require the young unemployed to undergo 25 hours worth of training per week in these areas to ensure they can receive their benefit payments.


It is to be seen if these services implemented by the government will have an effect but a greater sense of initiative by employers can also assist in a steady decline of youth unemployment rates. Assistance from employers Australia wide would create greater opportunity amongst youth in terms of finding and securing work.


Yes, there may be issues or risks involved for employers but this is without doubt the case when hiring any employee. If these services can assist people in becoming skilled and prepared for the workforce there should be no hesitation from companies to actively hire these people seeking to better themselves and earn a living.


If you are under the age of 25 – as I am – and unemployed, these changes are something you should be interested in understanding in greater depth than what I am outlining here. For many, it should bring a sense of relief to know that training and support services will be provided to unemployed youth. This is just one aspect of knowing how the budget can impact you and those around you.


It is now our responsibility as young Australians to begin to have an impact in the work place. Use your knowledge of the available incentives to start a job and gain a sense of independence, though this is always easier said than done. As I previously mentioned it can often be hard to motivate yourself to go out and look for that job everyone has been pushing for you to go get. I know, I was unemployed for almost a year.


As part of the future generation it is vital we begin to gain a better sense of what affects us and others that are our age. Youth employment should be on the radar of the federal government but it should also be on your radar. Remember job2fit is here to help you; we want to lower the youth unemployment rates and provide an opportunity to young job seekers who may just need that initial break.