Young job seekers face a tougher market as graduate hiring cools

A softer Australian economy is putting the prospects of younger job seekers under closer scrutiny, with economists watching whether their rising unemployment rate signals wider weakness ahead. September figures put youth unemployment at 11.1 per cent, against 4.7 per cent across the labour market, even though more young Australians are participating in work and job searches than before the pandemic.

Youth unemployment remains below its pre-pandemic level, but that does not remove the risk of another increase. Labour-market economist Blair Chapman says younger workers usually carry a larger share of the damage when activity slows. Commonwealth Bank economist Harry Ottley says unemployment among the young is already increasing more quickly than in other age groups.

The strain behind repeated applications

For 24-year-old Lachlan Riddell, the problem is personal rather than theoretical. He estimates he has sent hundreds of applications over three years, seeking jobs ranging from collecting supermarket trolleys to retail and hospitality. Repeated rejection and silence have left him questioning the point of continuing, an experience he describes as depression linked to job hunting.

Riddell holds a Diploma of Music and takes casual shifts as an audio-visual technician, but the work is irregular. He says his experience spans different jobs, rejecting the stereotype that generation Z is unwilling to work or is too selective about roles.

Most applications are submitted online and he rarely hears back. He believes automated recruitment increasingly prevents applicants from speaking to a person. He also worries that contacts can matter more than qualifications in Tasmania's small employment market. These are his observations of the search, not proof that every employer recruits in the same way.

While looking for stable employment, he relies on JobSeeker and help from his fiancée to meet living costs. His account illustrates how sporadic casual work can coexist with serious financial insecurity.

Graduate demand has cooled, but participation stays high

Graduate vacancies have retreated from their post-pandemic highs. Chapman points to reports of large employers reducing intake, including major accounting firms responding to weaker demand. He expects a softer economy could keep pressure on graduate recruitment.

Yet a rising unemployment rate does not mean every youth-employment measure has fallen. The number of young people with jobs has continued to grow. Ottley puts the youth employment-to-population ratio at 63.6 per cent, below the 66.7 per cent peak in November 2022 but above the 2019 average of 59.7 per cent.

Youth labour-force participation is 71.4 per cent, compared with 67.7 per cent in 2019. More young people entering or remaining in the market can therefore lift both the number employed and the number still seeking work. The different indicators need to be read together.

AI is a risk to watch, not a proven explanation for everything

Concern about artificial intelligence is especially strong for entry-level and white-collar jobs. However, a Department of Employment and Workplace Relations study released in July found no broad AI-driven disruption in Australia's labour market at that point.

It found employment for 20-to-24-year-olds had grown slightly faster than employment for people aged 25 and over since ChatGPT's introduction, while young graduates' outcomes remained resilient. It also noted United States evidence of weaker employment growth among younger workers in more AI-exposed occupations. Overseas findings are a warning to examine, rather than a direct measurement of Australian outcomes.

Qantas last week announced 850 job cuts alongside plans to accelerate its use of AI. Ottley expects some disruption around the edges over the next five years. Federal Skills and Training Minister Andrew Giles says AI is mainly changing how work is performed rather than replacing entire jobs, and that workers need skills to manage the transition.

Competition also comes from people who already have work. About one million Australians hold multiple jobs, adding to the pool competing for available positions. Giles says young job seekers need clear information about sectors with vacancies and where opportunities exist.

Prepare before the final semester

Chapman's advice to university students is to approach the labour market before finishing a degree. Graduate programs often accept applications in the preceding year. Following employers while studying can reveal internships, vacation placements and work-integrated learning opportunities early enough to apply.

Casual and part-time jobs can help even when they are outside a student's intended profession. Employers value evidence of communication, reliability, problem-solving, customer service and managing competing priorities. Students can use that experience to demonstrate transferable workplace skills.

Networking is another practical step: speak with alumni, attend industry events, join relevant professional associations and ask people in a field about their career paths. These conversations can improve understanding of the market and hiring routes, but do not guarantee an offer or remove the wider pressures facing younger workers.