Young people starting their first job following the COVID-19 crisis will earn on average $35,000 less than their peers over the next decade \u2013 a 6% pay cut, or essentially working over 6 months unpaid, modelling from the Australian Greens has predicted.
\nWith young people already enduring the hardest hit from working in those sectors that have been shut down, and half a million casual workers under 24 excluded from the JobKeeper scheme, the figure highlights the importance of putting young people\u2019s needs front and centre in recovery plans and to start supporting them now through JobKeeper.
\nThis modelling was undertaken by the Greens using predictions made by researchers looking at employment \u2018scarring\u2019 as a result of job market shocks and more young people competing for a shrinking pool of jobs.
\nThe research finds that in a hostile labour market, young people are more likely to accept lower paid or less suitable work, which then takes a long time to undo. The underpinning body of evidence from US studies assume a 3% rise in unemployment, far less than the increase from 5% to 10% foreshadowed \u2013 so young people could be even worse off than predicted.
\n\u201cImagine if today you got a 6% pay cut locked in for the next ten years of your life. That\u2019s the reality for every young person looking for their first job after the pandemic,\u201d Adam Bandt MP said.
\n\u201cIf you\u2019re entering the workforce now, you\u2019re not only battling stagnant wages, unaffordable housing and the climate crisis, you\u2019re trying to get into a job market that\u2019s collapsing around you.
\n\u201cYoung people will be hit the hardest when it comes to looking for a job. Unemployment will be through the roof and there will be even more crappy jobs that don\u2019t offer enough hours of work or high enough wages.\u201d
\n\u201cEven if you do manage to get a job on the other side, it will come at a cost. Young people can put a price tag on this pandemic. It will cost you $34,442 over the next decade and there\u2019s no refunds.
\n\u201cWhen you\u2019ve got bills piling up and rent to pay, it can be tough to turn down a lousy job that barely pays the bills, if only to keep a roof over your head. All too often one bad job leads to another, so it\u2019s really tough to get the experience and confidence needed to get the job you deserve.
\n\u201cRight now in Australia employers have all the power, so it\u2019s tough to get the leg up to the job you really want, and it will take up to a decade to get your career back on track.
\n\u201cThis $35,000 over a decade isn\u2019t just loose change that could go to rent, it\u2019s a housing deposit that\u2019s been taken away from you, money that could pay off your car, or go into your savings to get ready for a rainy day.
\n\u201cWe can turn this around. When we\u2019re rebuilding our economy, we need to put young people front and centre. We need to make sure that there\u2019s enough available and meaningful work available to make sure everyone has the job they deserve.
\n\u201cThat needs to start with making sure that all young people can access JobKeeper. By locking new casual workers out of JobKeeper, the Liberals have shown they don\u2019t understand the realities of the modern workplace.
\n\u201cBy ignoring young people, Scott Morrison is setting up the next generation to fail. The government is asking young people to pay for an economic stimulus package they\u2019re not even allowed to access.
\n\u201cIt\u2019s never been more important to get politically active and join your union. \u00a0With the Greens as your strong voice in parliament and the unions behind you, we can take back the workplace rights and opportunities that have been snatched away.\u201d
\nKey points:
\n\u2022 \u00a0 \u00a0 \u00a0 \u00a0 A young worker entering the workforce in the COVID-19 downturn will have a mean 6% reduction in annual earnings each year for a decade.
\n\u2022 \u00a0 \u00a0 \u00a0 \u00a0 Across a decade, this represents the loss of 60% of a year\u2019s annual income \u2013 or $34,442 when considering the average salary of a full time worker under 24 years old.
\n\u2022 \u00a0 \u00a0 \u00a0 \u00a0 As the underpinning body of evidence assumes a 3% rise in unemployment, far less than we are likely to experience, young people could be even worse off than predicted.
\n\u2022 \u00a0 \u00a0 \u00a0 \u00a0 This loss is compounded when considering the follow-on impacts on superannuation balance, a delayed move from renting to a mortgage, and a reduction in interest from savings.<\/p>\n","protected":false},"excerpt":{"rendered":"
Young people starting their first job following the COVID-19 crisis will earn on average $35,000 less than their peers over the next decade \u2013 a 6% pay cut, or essentially working over 6 months unpaid, modelling from the Australian Greens has predicted. With young people already enduring the hardest hit from working in those sectors … Continue reading “Modelling predicts \u2018pandemic price tag\u2019 for young people: $35,000”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-6333","post","type-post","status-publish","format-standard","hentry","category-aussie"],"_links":{"self":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/6333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=6333"}],"version-history":[{"count":0,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/6333\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=6333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=6333"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=6333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}