The impact of the Global Financial Crisis on youth unemployment

Abstract

Australia was one of the few OECD countries to emerge from the Global Financial Crisis (GFC) without facing a recession, usually defined as negative GDP growth for two consecutive quarters. However, the (overall) unemployment rate did increase following the GFC and has still not returned to pre-GFC levels. Unemployment rates for young people went up much more dramatically and remain high. This article investigates the impact of the GFC on youth unemployment and long-term unemployment. To anticipate our results, we find that the youth unemployment rates increased significantly owing to a fall in aggregate demand, although youth wages had been falling relative to adult wages. These findings do not support the commonly heard claim that youth wages are pricing young people out of the market.

Relationship of the youth unemployment and determinants of the labour market in the Balkan countries

“…According to the research that investigated the Australian youth labour market and the impact of the Global Financial Crisis on youth unemployment, young people lost jobs more rapidly during the crisis and employers stop hiring the new entrants. The results of this research implicated that the high unemployment rate could not be explained by minimum wages (Junankar, 2015). Same opinion shares authors who believed that minimum wages do not lead to increase unemployment (Booth, 2014;Card and Krueger, 1994).…”

Labour Supply and Childcare: Allowing Both Parents to Choose

“…These characteristics make HILDA especially relevant to this study. We use HILDA from wave 4 (2003–04) when the information on childcare prices and hours was introduced, to wave 9 (2008–09) after which Australia's reaction to the global financial crisis (GFC), could reasonably be expected to impact on the analysis (Junankar, ; Mohommad, ; Jericho, )…”

The Impact of Youth Policy Measures on the Labour Market

“…Scientific literature and research review allows separating the existence of two basic views about causes of high youth joblessness. According to the demand view, the principal reason for high and increased joblessness is the lack of adequate demand for youth workers due such factors as slow economic growth, cyclical weaknesses in the economy, changes in the mix jobs which alter the level of demand, and effects of minimum wages on employment dynamics (Baranowska, Gebel 2010;Cuesta et al 2011;Christopoulou 2013;Junankar 2015). According to the supply view, the principal reason for high and increased youth joblessness is a lack of skills, incentives and/or aspirations on the part of young (Korpysa 2010;Graham et al 2014;Turek 2015;Cunningham, Villasenor 2016;Hallsten et al 2017).…”