The Soul-Crushing Reality: Why Young Australians Are Struggling to Find Work in Today's Job Market

The Daily Grind of Job Hunting

On any given day, Poppy Blackman is engaged in what she describes as a "soul-crushing" process of applying for new jobs, rarely ever hearing anything back.

The 22-year-old has been unemployed since January 2025 and applies to an average of 50 roles per month, using one of four different CVs she has written for different types of jobs and sectors.

"I can't be picky with what I want to apply for," says Blackman, who studied fashion and art design but has given up on only applying within this sector. "Not a day goes by when I don't apply for at least a few jobs. It does get pretty miserable after a certain amount of time, always doing the same thing, looking on the same websites, applying for similar jobs. It does get a little bit soul-crushing."

Poppy Blackman: 'I can't be picky.' Photograph: Courtesy of Poppy Blackman

Youth Unemployment Reaches Alarming Levels

Blackman's story is becoming increasingly common. Official figures show youth unemployment among 18 to 24-year-olds rose to a five-year high in the final three months of 2025. Strip out the Covid spike in 2020 and youth unemployment has hit an 11-year high.

On a wider net of 16 to 24-year-olds, youth unemployment is now higher than the EU average for the first time, rising to 16.1%, the highest level including the pandemic since 2014. The EU average was 14.9% in the final quarter of 2025, while the overall UK unemployment level stands at 5.2%.

Former MP and minister Alan Milburn, chair of the government's Young People and Work review, warned that the rise in youth unemployment poses an "existential" risk and could put "a generation on the scrapheap."

"This is not a short-term phenomenon, it's a long-term one," he said. "We're seeing something dramatic changing in the labour markets. Forty-five per cent of 24-year-olds who are not in education, employment or training have never had a job. If you haven't had a job by 24, that entails a long-term scarring effect."

Economic Factors Driving the Crisis

Ashwin Prasad, who runs the UK arm of Tesco, recently warned that the UK was "sleepwalking into a quiet epidemic" of joblessness, with millions of people out of work and on benefits.

Martin Beck, chief economist at WPI Strategy, explained: "The economy has been sluggish for a long time and that tends to hit younger people first, because if you're an employer and your demand is weak, you're probably going to freeze recruitment. You're not going to open up as many entry-level roles."

Economists point to several key factors contributing to rising youth unemployment:

• Increased employer costs from higher national insurance contributions
• Rising minimum wage (6.7% in 2025, 4.1% in April 2026)
• New employment rights adding to business expenses
• Pensions auto-enrolment requirements

Simon French, chief economist at Panmure Liberum, noted: "The 'national living wage' is probably the most significant factor over the last decade in terms of its impact on youth unemployment. But if you then layer on top of that the employer national insurance changes, plus the Employment Rights Act, on top of pensions auto-enrolment – that is a lot to absorb."

The Graduate Experience: A Catch-22 Situation

Jack, 21, graduated from Oxford University last summer with a first in history. He has since applied for more than 100 jobs, graduate schemes and internships and describes the application process as grueling.

"You hear back from maybe 10% of applications and usually it's automated, so you don't even know what you're doing wrong," he says. "I've spoken to one human out of all those applications. I've even been interviewed by chatbots."

He feels trapped in what he describes as a catch-22: "Entry-level roles want you to already have a foot in the door. The roles in which you begin your career require you to have already been in roles in which you begin your career. It's a classic case of the chicken and the egg."

AI's Impact on Youth Employment

While many graduates worry about companies using artificial intelligence to replace jobs, Jake Finney, senior economist at PwC, said their youth employment index for 2025 found AI was not a big factor at the economy-wide level.

"Young people are concentrated in industries like retail and hospitality and these are not the sectors that have been hit by AI so far," he explained. "But if you look at the IT sector, which is obviously the sector that's been most impacted by AI and automation so far, we've found that adult employment has been relatively stable, whereas youth employment has dropped by around a fifth."

Adapting to the New Reality

Saalim Elhaj, 23, graduated with an architecture degree in June 2025 but has decided to learn new skills to find employment. After seeing how few jobs were available for recent graduates in architecture, he expanded his skillset and is now hoping to secure an apprenticeship in timber framing.

Saalim Elhaj no longer sees himself pursuing a career in architecture. Photograph: Courtesy of Saalim Elhaj

"It's really bizarre, doing a university degree and now thinking about an apprenticeship, but everything is very uncertain and I really want to learn a skill," he says.

Jonathan Townsend, UK chief executive of The King's Trust, which helps young people find work, observed: "More young people are coming to us eager to work but feeling locked out of opportunities. This generation has faced a uniquely difficult start to working life. Many had their education and early work experiences disrupted by the pandemic, leaving gaps in skills, confidence and networks that are crucial for getting a first job."

Julie Leonard, chief impact officer at Shaw Trust, added: "This generation has had a raw deal. They've faced a pandemic during the time when vital skills for the workplace are gained, and are starting their working lives during unprecedented social and technological change."