Youth unemployment a challenge for Aussie workforce
Baby boomers' retirements coupled with the high rate of unemployment among young Australians will see a significant ‘brain drain' from the nation's workforce, a new report predicts.
The AMP.NATSEM Report warned business owners that a "massive wave of skills and experience" will be taken from the Australian workforce over the coming years as baby boomers retire.
With youth unemployment 4.5 times higher than it is for those aged 20 and over — at 27.2 per cent compared to 6.2 per cent, AMP chief customer officer, Paul Sainsbury said young Australians were not gaining the experience required to fill the void left by retiring baby boomers.
"People over 65 are projected to make up nearly a quarter of the population in the future," he said.
"As older people leave the workforce they will take with them skills and experience, while many young people are struggling to find work. As a consequence, it might mean that younger people are not getting the experience they need to do these jobs in the future."
The report forecast that the proportion of working age people would drop to 60 per cent by 2050, down from 67.4 per cent in 2010.
"The report highlights the challenges of an ageing population," he said.
"With lower birth rates and much longer life expectancy, it is critically important for people to adequately plan for their future so they not only enjoy a comfortable retirement, but also Australia remains prosperous as the workforce composition changes."
While the report showed youth unemployment was significantly higher than the overall unemployment rate, it noted that Australia had the sixth lowest unemployment rate of the OECD countries.
The report found that 65 per cent of Australians age 15 years or older, were in full or part-time employment, with almost 50 per cent working more than 40 hours a week.
AUTHOR
Nicholas O'Donoghue
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
