Why Australia's Youth Are Struggling to Land Their First Job – And What It Means for the Future

The Vanishing First Job

Remember your first job? Whether it was clearing stones from a farmer's field like Keir Starmer, flipping burgers at McDonald's like Kemi Badenoch, or waitressing in a pub with rottweilers behind the bar, those early roles were more than just a paycheck. They were a crash course in handling customers, taking criticism, and learning the ropes of the working world.

But for today's young Australians, landing that crucial first job is becoming increasingly difficult. Youth unemployment rates are hitting highs not seen since 2015, with school leavers competing against overqualified graduates for entry-level positions in pubs, shops, and cafes.

The Rising Cost of Hiring Young Workers

According to recent analysis, it now costs 26% more to hire an 18- to 20-year-old than it did just a few years ago. This increase stems from several factors:

• Higher minimum wage rates for younger workers
• Increased employer national insurance contributions
• General economic pressures on businesses

While raising the minimum wage was intended to improve living standards, there's growing concern that it might be pricing young people out of the job market. When it costs the same to hire four teenagers as it once did to hire five, employers become more selective about who they bring on board.

Beyond the 'Snowflake' Narrative

For too long, the political debate has focused on blaming young people for being "anxious snowflakes" rather than addressing the structural issues making it harder for them to find work. As one review noted, while mental health challenges are rising globally, Australia's rates of young people not in education, employment, or training (NEET) are significantly higher than in countries like the Netherlands.

The economic factors can't be ignored. When employers face higher costs for hiring inexperienced workers, they're more likely to choose seasoned applicants over teenagers who need more supervision and training.

The Minimum Wage Dilemma

The minimum wage was originally designed to prevent exploitation and create a floor from which workers could advance. However, as governments have struggled to stimulate economic growth, the minimum wage has been asked to do more heavy lifting in improving living standards.

There's now serious discussion about whether we've reached a ceiling on what employers can reasonably afford to pay, particularly for entry-level positions. Some experts who championed the original minimum wage now believe that rising youth minimum wages are contributing to higher youth unemployment.

Finding the Right Balance

The challenge for policymakers is finding the sweet spot between:

• Ensuring fair pay for young workers
• Making it economically viable for employers to hire inexperienced staff
• Supporting those young people who genuinely need to support themselves

As one minister hinted recently, any adjustments to youth wage policies should be part of a broader rethink of how working poverty has evolved since the minimum wage was introduced. The worst outcome would be to stubbornly continue with policies that might be making young people's lives harder just to avoid admitting that adjustments are needed.

The first job experience – with all its mortifying mistakes and valuable lessons – is becoming harder to access for Australia's youth. Finding solutions that work for both young job seekers and employers will be crucial for building a stronger workforce for the future.