Business Toolbox

Australia's young people leaving school or university have been facing a critical challenge in recent years: the lack of entry-level jobs available. 

This issue is not just about unemployment rates; it's about the structural barriers that are preventing an entire generation from gaining a foothold in the workforce. With youth unemployment once again on the rise – an extra 34,600 youths were unemployed in July 2024 compared with July 2023 (up 17.7%) - the growing scarcity of entry-level positions is a pressing concern. 

Impact on youth employment 

The lack of entry-level jobs has far-reaching consequences for young Australians. Without these positions, young people struggle to gain the experience needed to advance in their careers, leading to prolonged periods of unemployment or underemployment. 

This not only affects their financial stability but also has a lasting impact on their mental health and overall wellbeing. 

The situation is particularly dire for those from disadvantaged backgrounds, who may not have the networks or resources to secure internships or volunteer positions that could help them build experience. The result is a growing divide between those who can afford to work for little or no pay to gain experience and those who cannot, exacerbating social inequalities. 

The role of employers and policymakers 

Addressing this issue requires a concerted effort from both employers and policymakers. 

Employers need to recognise the value of investing in the next generation of workers by creating more entry-level roles including graduate roles for those coming out of university; and providing on-the-job training to build workforce skills through apprenticeships and traineeships. This not only benefits young people but also helps businesses build a pipeline of skilled and loyal employees who can grow with the business. 

Policymakers also have a crucial role to play. Governments at all levels need to implement policies that put a spotlight on the importance of entry-level pathway creation; incentivise the creation of entry-level positions; and support industries that provide these opportunities.  

This could include improved subsidies for businesses that hire people in apprenticeships, traineeships and graduate roles, or funding for innovative programs that connect young people with job opportunities such as Graduate Role Liaison Advisers; or programs to assist in making entry-level job creation simple for employers, particularly small to medium enterprises. 

Imagine if employers were incentivised to create graduate roles for newly qualified students (instead of employing experienced workers), and could get support to put that new graduate through a professional development program for the first 12 months to build their employability and soft skills? 

We’d see a lot more opportunities made available to young people and some great employment outcomes achieved, including local pipelines of workers being developed.   

Taking action 

There are existing mechanisms available to businesses that support businesses to create a talent pipeline that employers can access now.  

1. Engage with existing structured work experience programs (Job Ready programs through TAFE) with students undertaking courses that require short workplace components; or offer Work Integrated Learning opportunities to university students that are undertaking a work ready unit as part of their course. This provides young people with the opportunity to gain work-readiness skills, and employers to identify potential talent to offer more permanent opportunities to in the workplace, if available.  
2. Take on a school-based apprentice or trainee. This allows a high school student to do (usually) one day a week in the workplace while they work towards achieving a Certificate II qualification and complete their secondary schooling, putting them on a stronger path to employment or further study once they have finished high school. 
3. Create an entry level pathway into your business through apprenticeships and traineeships. Identify roles that currently have skilled and experienced workers in them so that you can transfer knowledge and skills from one generation to the next, while the apprentice or trainee attains an industry qualification. 
4. Introduce graduate roles in your business. Identify professional workers in your organisation that could develop a newly qualified graduates, by providing opportunities for graduates to apply their theoretical knowledge to real work tasks.  

The lack of entry-level jobs for young Australians is a significant issue that cannot be ignored. Without these opportunities, an entire generation risks being left behind, unable to gain the experience and skills needed to build a successful career.  

It is essential for both employers and policymakers to take action to address this challenge, ensuring that young people have the opportunities they need to succeed in the workforce and contribute to Australia's economic future. 

The time to act is now  — before the gap between the job market and young Australians widens further, creating long-term consequences for individuals and society as a whole. 

CCIWA can assist it businesses with workforce development and entry level role advice and support. We can support employers to access Work Integrated Learning programs; an Apprentice Connect Provider service that can support employers to establish apprenticeships and traineeships in their business; and Industry Advisers that can connect employers into work experience programs.