Unemployment occurs when individuals who are capable and willing to work cannot find jobs. It is measured by the unemployment rate, which is the percentage of the labour force that is unemployed. Various factors, including economic downturns, technological changes, and structural shifts in the economy, can influence unemployment rates. The impacts of unemployment, however, are not evenly distributed across different groups.

Youth Unemployment

Young people are defined as those between the ages of 15-24. Younger workers often face higher unemployment rates due to their lack of experience, skills mismatch, and the cyclical nature of certain industries that employ many young people, such as retail and hospitality. This generally means the youth unemployment rate is larger than the rate of unemployment for the whole economy. As of April 2023, the youth unemployment rate in Australia was 7.9%, compared to the overall unemployment rate of 3.7%. The following graph displays how this significant divide has been the trend for multiple years:

The causes of youth unemployment are as follows:

Older Workers

Workers aged 55 and above can face unique challenges in the labour market. While the unemployment rate for older workers is generally lower than the overall rate, they often face longer periods of unemployment when job loss occurs. Furthermore, job losses in people aged 55 and above can have serious economic implications, namely: loss of valuable experience and institutional knowledge and increased pressure on pension systems.

The causes of unemployment in older workers are as follows:

Indigenous Australians

Indigenous populations often experience higher unemployment rates due to systemic barriers such as discrimination, lower levels of educational attainment, and geographical isolation from employment opportunities. For example, in Australia, the unemployment rate among Indigenous Australians was 18% in 2018, significantly higher than the national average of 5.3%. Additionally, higher unemployment rates in Indigenous groups can have significant impacts on the overall economy. These implications are notably: untapped potential for economic growth and diversity and increased government expenditure on welfare and targeted programs.

Thus, the main causes for higher unemployment in Indigenous Australian groups are:

Migrants and Refugees

Recent arrivals to Australia often face challenges in the labour market. For example, the unemployment rate for migrants and temporary residents was 5.9% in 2019, which was higher than the overall rate. This comes as a result of:

As a result of this, there can be serious economic implications for the Australian economy, such as the underutilisation of skills and qualifications and delayed economic integration and contribution. Due to this, there is a potential rise for social cohesion issues.

People With Disabilities

Individuals with disabilities face significant barriers to employment. As of 2022, the unemployment rate for people with disability in Australia remains at 10%. This rate is nearly triple the overall unemployment rate and highlights the persistent challenges faced by people with disabilities in securing employment. The main causes of increased unemployment for people with disabilities are as follows:

Thus, increased unemployment in the group of people with disabilities can be detrimental to the Australian economy. This mainly comes in the form of increased reliance on disability support pensions, straining the government's taxation revenue.