A Deep Dive into Australian Youth Unemployment Trends

Youth unemployment in Australia is a complex and persistent challenge. Despite a national unemployment rate of around 4.3%, the rate for young people aged 15 to 24 remains significantly higher, hovering between 9% and 10%. This disparity highlights how young Australians continue to be disproportionately affected by economic shifts, job market instability, and structural inequality.

This article explores the underlying factors contributing to youth unemployment, recent trends, and the role of culturally connected programs like those delivered by the Johnathan Thurston Academy (JTA) in creating real change.

The Current Landscape

According to recent labour force data, Australia’s youth unemployment rate reached 10.4% in June 2025, up from 9.5% in May. This is more than double the general unemployment rate. Youth employment often reacts more sharply to market downturns, as younger workers typically hold more casual or entry-level positions that are the first to be cut during economic stress.

Young people are also overrepresented in industries highly sensitive to economic fluctuations, such as hospitality, retail, and tourism. These industries were particularly affected during the COVID-19 pandemic and continue to recover unevenly across regions.

Why Young People Are More Vulnerable

There are several reasons why youth unemployment remains consistently high:

• Lack of Experience: Many employers demand prior work experience, even for entry-level roles. This creates a catch-22 for young people who cannot secure their first job because they haven’t had one before.
• Education and Skills Gaps: While some young people leave school without formal qualifications, others may have degrees that do not align with market demands. Vocational and skills-based training opportunities remain unevenly distributed across the country.
• Casualisation of the Workforce: Young Australians are more likely to be in part-time, temporary, or casual work arrangements. These roles often lack job security, benefits, or career progression.
• Geographic Barriers: In regional and remote areas, there are simply fewer employment opportunities. Young people living in these communities face added transportation, training, and connectivity barriers.
• Discrimination and Inequity: Aboriginal and Torres Strait Islander youth, young people with disability, and culturally and linguistically diverse (CALD) youth face greater barriers due to systemic discrimination and limited access to culturally safe training or employment pathways.

The Hidden Crisis of Exploitation

A concerning trend among youth employment is the rise in workplace exploitation. Surveys indicate that over one-third of young Australians have experienced wage theft, unpaid trials, or being paid below the legal minimum wage. In many cases, young workers are unaware of their rights or feel powerless to challenge employers, particularly in industries like hospitality and retail.

Exploitation leads not only to financial hardship but also to disillusionment and psychological distress. It’s a silent driver of youth disengagement, contributing to the broader unemployment crisis. Empowering young workers with legal literacy and workplace confidence is critical to ending this trend.

The Consequences of Unemployment

Youth unemployment is not just an economic issue—it’s a social one with long-term consequences:

• Mental Health Impacts: Prolonged joblessness can lead to anxiety, depression, low self-esteem, and social withdrawal.
• Financial Instability:Without reliable income, young people may fall into cycles of debt, housing insecurity, or family conflict.
• Educational Disengagement: Unemployment discourages further learning. Those not in work or training often disengage from education altogether.
• Delayed Life Milestones: Employment enables young people to build independence, pursue further education, or start families. Unemployment delays all of these milestones.
• Generational Poverty: The effects of youth unemployment can be intergenerational, particularly for marginalised communities.

Systemic Gaps in Policy

Governments have introduced a range of youth employment programs, but results have been mixed:

• Youth Jobs PaTH, an internship and work experience initiative, showed promise but lacked long-term support mechanisms for sustained employment outcomes.
• Work for the Dole has been criticised for being punitive and ineffective, offering little to no skill development for participants.
• Apprenticeship and trainee incentives have helped some, but uptake remains low among disadvantaged youth without existing support networks.

What these programs often fail to address is the intersectionality of unemployment, where factors like culture, community, mental health, and systemic inequality all converge. A one-size-fits-all model is simply not enough.

The JT Academy Approach

JT Academy stands out by offering youth programs that not only build employability skills but also focus on confidence, identity, and culturally respectful mentoring. Founded by rugby league legend Johnathan Thurston, the Academy’s mission is to create safe, inspiring pathways for young people, especially those from Aboriginal and Torres Strait Islander communities.

Key elements of the Academy’s work include:

• Culturally Safe Programs: Young people feel seen, heard, and respected in culturally safe learning environments. This strengthens engagement and mental wellbeing.
• Mentorship: From facilitators and community leaders to peer mentors, support is consistent and relational, focusing on the whole person, not just their resume.
• Real Skills Training: Programs like JTBelieve and JTSucceed include resume writing, mock interviews, goal setting, and confidence-building activities.
• Employer Partnerships:JT Academy connects youth with employers who understand and value cultural diversity and commit to ethical workplace practices.
• Ongoing Support: Unlike many programs that offer short-term outcomes, JT Academy continues to engage with graduates, offering alumni pathways, leadership opportunities, and mentorship roles.

Empowering Young People Through Confidence and Culture

A standout element of JT Academy’s success is its focus on self-belief and identity. Many young people disengage from employment not because they lack ambition, but because they lack confidence, mentorship, or cultural connection.

When youth are empowered to see their strengths, set goals, and lead in their own communities, the results are transformational. JT Academy has countless stories of participants who have reconnected with education, secured meaningful work, and stepped into leadership roles—all because someone believed in them and gave them the right tools.

Building Legal Literacy and Rights Awareness

In response to widespread exploitation, JT Academy integrates employment rights education into its workshops. Young people learn about:

• Minimum wage entitlements
• Superannuation obligations
• How to identify wage theft
• Where to go for help

By demystifying workplace rights, JT Academy equips youth with the knowledge and confidence to advocate for themselves. This is essential for breaking cycles of insecure work and building long-term job satisfaction.

How Youth Employment Strengthens Communities

In response to widespread exploitation, JT Academy integrates employment rights education into its workshops. Young people learn about:

When young people thrive, so do schools, neighbourhoods, and local businesses. And when those young people are also proud of their culture, connected to their mentors, and guided by real-life skills, the effect is powerful and lasting.

International Lessons

Australia can learn from countries with lower youth unemployment rates:

• Germany and Switzerland use dual education systems, blending classroom learning with practical apprenticeships.
• Nordic countries offer strong social protections, integrated mental health support, and proactive youth engagement policies.
• Singapore and South Korea focus on career readiness from secondary school, aligning national education with employment trends.

What these countries share is a clear commitment to equipping youth with job-ready skills and building inclusive systems of support—strategies that JT Academy is already implementing at the community level.

Recommendations for the Way Forward

To combat youth unemployment effectively, Australia needs to:

• Expand Access to Vocational Training: Invest in free or low-cost TAFE programs, especially in remote and regional areas.
• Support Community-Led Initiatives: Fund organisations like JT Academy that offer holistic, culturally appropriate youth development.
• Enhance Mentorship and Alumni Programs: Long-term engagement leads to sustained outcomes.
• Combat Exploitation: Enforce wage laws and provide easy pathways for young people to report violations.
• Tailor Policy by Region and Demographic: What works in inner-city Sydney may not work in remote Queensland. Flexibility is key.

Hope Through Empowerment

Youth unemployment is more than an economic metric—it’s a measure of our society’s capacity to invest in its future. Young Australians are ambitious, resilient, and full of potential. What they need are systems that support—not punish—their growth.

JT Academy proves that with the right support, training, and cultural connection, young people can overcome barriers and build successful, meaningful lives. The Academy’s work is a blueprint for what youth employment initiatives should look like—relationship-driven, culturally grounded, and unshakably hopeful.

For policymakers, employers, and educators, the message is clear: when we invest in young people, everyone wins.