Youths are doing everything they have been told to do. Studying, getting a degree, completing one or two internships, learning new skills to prepare for the workforce.

Perhaps that may have worked for their parents and grandparents’ generations. 

But no one told them this textbook definition for success and securing a job is long gone. 

In Australia, the latest report by The Daily shows that the youth unemployment rate has increased to 11.1%, the highest it has been since October 2021. While this statistic applies to young people aged 15 to 24, Australia's rate of 4.3% for unemployment of all age groups has also risen since February, according to the Australian Bureau of Statistics (ABS). 

Nearly one in four young people in the labour force are either unemployed or looking for more hours, bringing the underutilisation rate to almost 27% and its highest mark since August 2021.

As reported by the ABC, an estimated 39,300 fewer Australians were in work last month, and the number of officially unemployed people increased by 8,900.

The data comes after the IMF released its latest outlook on the global economy.

Predictions have forecasted that this statistic for Australia would only increase to 4.7% next year.

The Entry-Level Experience Paradox

The current situation of being "ghosted" might be the most common situation for most job seekers and recent graduates. Application after application with no news or follow-up from companies. 

If not "ghosting", it could be rejections with a generic email wishing luck for the job hunt.

Entry-level jobs being marketed as entry-level jobs that require years of experience in a relevant agency or company. However, securing an internship in this current job market is nearly impossible as high competition for these positions remains. 

One could do the math. If internships are scarce and entry-level roles demand experience, where are youths supposed to begin?

The issue extends beyond employment opportunities alone. Many entry-level positions now demand qualifications, technical skills, internship experience, and even industry-specific knowledge, yet often offer salaries that fail to reflect these expectations.

This raises an important question: if employers value experience so highly, should wages not reflect that value as well? 

Hiring processes are another problem. With the popularity of Generative AI, organisations often use digital applicant tracking systems that filter job candidates by keywords, skills, education and years of experience. Systems screen out candidates before a hiring manager ever has a chance to look at CVs. 

For many youths and recent graduates, the challenge is no longer just about becoming employable, but finding an employer willing to give them a start.

Jobless Generation? It is a Global Trend

Despite the potential increase, Australia’s unemployment rate is lower than many advanced countries.

What about the global situation this year? The Global Employment Trend for Youths report that the global youth unemployment rate rose to 12.4% in 2025, equivalent to 67 million unemployed people aged 15 to 24 years around the world. 

Factors such as slowing economic growth, lack of jobs, geopolitical tensions and rapid technological change have been cited by the International Labour Organisation (ILO) as the main causes for the crisis in the job market. 

Blaming Generation Z For Being “Lazy” Misses the Point

Each generation values a different set of values for work and employers have to be aware that just as job expectations of new hires are changing, so are the new attitudes and mindsets of the new generation.

Workplace criticism as reported in The Guardian frequently cite Gen Zs or fresh graduates as being “entitled” or “delusional” for a demand for work-life balance such as skipping uncompensated overtime and declining after hours communication.  

Sometimes, being able to take a day off is seen as “lazy”.

Yet these expectations do not necessarily reflect laziness or a lack of work ethic. Instead, they represent a shift in workplace values, with youths placing greater importance on boundaries, wellbeing and fair compensation for their labour. 

Subreddit (sourced 3 years ago) reflecting a common struggle for Gen Zs

The criticism also overlooks the vastly different economic realities of this generation.

Many youths face severe structural pressures, including soaring living costs, heavy student debt and rent crisis as seen by the recent protests from youths in France. 

Source: Linkedin 

If employers expect young workers to be flexible with their time, including working beyond regular hours and on weekends, wages should adequately reflect those expectations.

As outlined in CNA’s article, creating motivation starts from the hiring process. As quoted from the article, competitive pay matters. Clear opportunities for growth matter. Medical benefits matter. Good managers matter. And a healthy work environment matters. 

Turning the Tide on Youth Unemployment

Renewed actions are needed to help young people navigate an increasingly uncertain world of work.

Adopting a human-centred approach to AI governance to ensure fair hiring processes and creating more accessible entry-level roles with fair compensation.

Ensuring that the benefits and compensation offered by a role align with the expectations placed on new employees is essential.

Companies need to reflect on the structural problem, not a talent problem. By creating youth employability and graduate programs, this equips youths with real-world employability skills and matches them with proper career pathways.

When young people can secure meaningful work, they are better positioned to achieve financial independence, support local businesses and contribute to the broader economy.

In this sense, creating opportunities for young workers is not simply a social responsibility, but an economic investment for the future.

Cover image source: ABC News