3 years ago
COVID-19 RECESSION WILL COST YOUNG PEOPLE IN THE LONG TERM
BRENDAN O’CONNOR MP
More evidence has highlighted the economic burden being carried by young Australians, revealing the COVID-19 recession could cost young people up to $7 billion in lost wages over a decade.
New research conducted by EY shows the average 21 year old entering the workforce is likely to miss out on up to $32,000 over a decade, and that workers aged 18 – 23 years could have $22,000 less to spend on a home and $30,000 less in retirement savings.
With 90 per cent of a worker’s income growth occurring in the first decade of their career, young people entering the workforce during a recession will have their long term earnings severely impacted.
We know young people are facing an incredibly heavy economic burden during this pandemic – with many not only facing a reduction in earnings, but the complete loss of work.
The most recent labour force figures showed 16.1 per cent of our young people are now unemployed, well more than double the national average of 7.1 per cent.
The true extent of the crisis facing our young people continues to unfold, and our young population desperately needs leadership and a plan from the Morrison Government.
The Government must take all necessary steps to support our young people during and after this crisis, or we could see entrenched consequences for years to come.
One thing the Government could do right now is better target support to ensure our young Australians are not being left behind. It is also vital that the Government does not take a snap back approach and withdraw support too quickly or bluntly.
The less done to protect jobs and support vulnerable young people in the coming months, the harder and longer the recovery will be.
The Morrison Government must ensure our young people are not left out and left behind in the recovery.
New research conducted by EY shows the average 21 year old entering the workforce is likely to miss out on up to $32,000 over a decade, and that workers aged 18 – 23 years could have $22,000 less to spend on a home and $30,000 less in retirement savings.
With 90 per cent of a worker’s income growth occurring in the first decade of their career, young people entering the workforce during a recession will have their long term earnings severely impacted.
We know young people are facing an incredibly heavy economic burden during this pandemic – with many not only facing a reduction in earnings, but the complete loss of work.
The most recent labour force figures showed 16.1 per cent of our young people are now unemployed, well more than double the national average of 7.1 per cent.
The true extent of the crisis facing our young people continues to unfold, and our young population desperately needs leadership and a plan from the Morrison Government.
The Government must take all necessary steps to support our young people during and after this crisis, or we could see entrenched consequences for years to come.
One thing the Government could do right now is better target support to ensure our young Australians are not being left behind. It is also vital that the Government does not take a snap back approach and withdraw support too quickly or bluntly.
The less done to protect jobs and support vulnerable young people in the coming months, the harder and longer the recovery will be.
The Morrison Government must ensure our young people are not left out and left behind in the recovery.