JobKeeper and JobMaker have left too many young people on the dole queue


Kathryn Daley, RMIT University; Belinda Johnson, RMIT University, and Patrick O’Keeffe, RMIT UniversityOf the more than 870,000 Australians who lost their jobs in the first few months of the COVID-19 crisis, 332,200 – or 38% – were young Australians aged 15-24.

By June 2020, as the overall unemployment rate hit 7.4%, the youth unemployment rate spiked to 16.4%, with a further 19.7% underemployed (working fewer hours than they wanted).

As of February the overall unemployment rate had fallen to 5.8%, compared with 5.1% in February 2020. The youth unemployment rate meanwhile was 12.9%, compared with 11.5% the year before, and a further 16% were underemployed.

Prime Minister Scott Morrison has enthused about there now being “more jobs in the Australian economy than there were before the pandemic”. But that’s true only for those 25 and older: 77,600 more are employed than before the crisis. For those aged 24 and under, 74,100 fewer have jobs.




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So clearly the pandemic has hit younger workers the hardest. The reasons for disproportionate impact aren’t complicated. Young people are more likely to work in casual jobs – the first to be excised in hard economic times – and in those sectors most affected by border closures, lockdowns and other measures – retail, hospitality, tourism.

Yet the federal government’s policy responses, injecting billions of dollars into the economy to support businesses and employment, have compounded this impact through deliberate yet flawed policy design.

JobKeeper has kept proportionally fewer young people in jobs. Changes allowing withdrawal of superannuation will hurt them more in the longer term. And JobMaker, the program designed specifically to encourage employment of younger workers, has proven a monumental flop.

Shut out of JobKeeper

The centrepiece of the federal government’s support measures was the A$100 billion JobKeeper program, initially paying a subsidy of $750 a week before tapering and finally being axed at the end of March.

The Reserve Bank of Australia estimates JobKeeper payments kept at least 700,000 workers off the dole queue. But to qualify, employees had to have been working for their employer for a minimum of 12 months.

This disproportionately excluded younger workers – being more likely to be recent workforce entrants, to switch jobs more than older workers, and to be in employed in casual or other forms of insecure work.

To illustrate, Australian Bureau of Statistics data from August 2019 shows young people comprised 17% of the workforce yet accounted for 46% of all short-term casual employees.

Of those employed casually, 26.4% of young people had been with their employer for less than 12 months, compared to 6.5% of those aged 25 and over. So one in four young people employed casually were not eligible for JobKeeper, compared with only one in 16 of their older counterparts.




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Drawing down superannuation

JobKeeper’s design thus pushed proportionally more younger workers on to the dole queue. It also likely contributed to more of them dipping into their superannuation savings under the provisions announced by the federal government in March 2020.

Those provisions allowed Australians affected by the economic crisis to withdraw up to $20,000 from their superannuation accounts (in two rounds of $10,000 each – one last financial year, another this financial year).

The Industry Super Australia estimated about 395,000 people under 35 completely drained their super accounts.

This emptying of accounts is not surprising given the average superannuation balance by age 30 is about $28,000 for men and $23,700 for women.

But it means many will have considerably less super to retire on. The long-term cost of a 25 year-old withdrawing $20,000 is more than $100,000, compared with about $37,000 for a 50-year-old, according to estimates by financial comparison site Canstar.


Spend now, lose later


Canstar, CC BY-NC

There’s also evidence the design of the super-access scheme has allowed unnecessary withdrawals. While those taking out money have had to declare they need the money to pay for essential items (such as rent or bills), there has been no scrutiny of this prior to approval.

Indeed, according to credit-scoring company Illion about two-thirds of the funds withdrawn this financial year was spent on discretionary items such as clothing, furniture, restaurants and alcohol.

As former prime minister Paul Keating has put it, the government has relied on individuals “ratting their own savings” to buttress its own stimulus spending.




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More work needed

The one program meant to specifically address youth unemployment, the JobMaker Hiring Credit, has so far proven a failure. Its aim is to incentivise employers to hire job seekers aged 16 to35 with a weekly $200 subsidy, creating 450,000 jobs over two years. But in late March, Treasury officials revealed it had so far led to just 609 hires.

All unemployment is costly for individuals, families and the wider community. But high and long-term youth unemployment can have particularly dire consequences that reverberate for decades. It creates the risk of “scarring”, suppressing an individual’s job and income prospects over their entire life. That ultimately requires the government picking up the tab.

Youth unemployment was already a significant issue prior to the COVID crisis. Now, with younger people hit hardest by the pandemic’s economic impacts, it’s imperative to ensure an entire generation is not permanently disadvantaged.The Conversation

Kathryn Daley, Senior Lecturer & Program Manager – Youth Work and Youth Studies. School of Global, Urban and Social Studies, RMIT University, RMIT University; Belinda Johnson, Lecturer and Program Manager, Social Science (Psychology), School of Global, Urban and Social Studies, RMIT University, RMIT University, and Patrick O’Keeffe, Lecturer, Bachelor of Youth Work and Youth Studies, RMIT University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

PAKISTAN: TALIBAN BOMBS CATHOLIC GIRLS’ HIGH SCHOOL


Blast claims no victims but reflects radical Islam’s tightened grip.

ISTANBUL, October 14 (Compass Direct News) – Taliban militants bombed a Catholic-run girls’ school in Pakistan’s war-torn Swat Valley as part of a larger effort to subvert women’s status in society through Islamic law, locals say.

On Wednesday (Oct. 8) the Islamic terrorist group bombed the Convent Girls’ School in Sangota, run by the Presentation Sisters, a Catholic religious order that has opened girls’ schools around the world. Militants have threatened the school frequently for offering education to females.

No one was injured in the attack. The school had closed a few months earlier due to deteriorating security in Swat, a source told Compass. Students and faculty left in July following threats.

“The Taliban said, ‘We have asked you so many times to close down the school but you are not listening. We are going to set it on fire,’” said Yousef Benjamin, a Lahore-based peace activist.

Militants had already attacked or blown up and forced the closure of many girls’ schools in Swat, said Cecil Chaudhry, executive secretary of All Pakistan Minorities Alliance. They told the nuns they would destroy their school if it weren’t closed. Following the bombing the militants ransacked the school’s adjoining convent.

The high school enrolled approximately 1,000 female students, nearly 95 percent of them Muslim.

The Santoga school has faced threats from Islamic extremists before. It closed its doors in September 2007 after received a threatening letter from extremists that demanded all teachers and female students wear the burqa. The letter claimed the faculty was working to convert Muslim students to Christianity.

The Taliban has not singled out the school for its Christian ties but instead wants to clamp down on all girls’ schools, which they believe encourage female participation in society, government officials claim.

In the last two years it has indiscriminately targeted more than 150 public and private girls’ schools in northwest Pakistan.

“For them it doesn’t matter if it’s a Christian school, government school or a private school,” Benjamin said. “Last week I was in [the northern city of] Peshawer and the Taliban told women to not even go to the market.”

The Taliban ruled Afghanistan from 1994 to 2001. They severely curtailed women’s rights, barring females from education, employment or traveling outside of their homes without a male relative.

“A few years ago the Taliban government in Afghanistan did not even allow women to be seen outside their houses, and that’s the version of Islam the Taliban promotes,” Chaudhry said.

Located near the Afghanistan border, Swat has been a flash point between the country’s security forces and Islamic militants. The area used to be a thriving tourist haven with hotels and a ski resort but came under complete control of Taliban militants in September 2007.

Government security forces cleared out the Taliban from the valley in recent months, but the area came under their control once again three weeks ago.

With their re-asserted control, the Taliban has forced all Swat residents to live according to their strict lifestyle guidelines, whether Muslim or Christian.

Men have grown beards and adopted Islamic dress. Women are required to wear burqas and sit in the back seat of their own vehicles. Advertisements cannot feature pictures of women.

“The Taliban wants to create a culture of terror, insecurity and they want to impose a self-created system of sharia [Islamic law] inspired by the system in Afghanistan,” said Shabhaz Bhatti, a National Assembly member from the Punjab province and chairman of the All Pakistan Minorities Alliance.

The 70 or so Christian families scattered in the valley occupy the lower class, working as laborers and street sweepers.

Since July 2007, militants and followers of Muslim cleric Maulana Fazlullah have pressured the tiny community of Christians to accept Islamic law.

 

Political Motives

Islamic militants have stepped up attacks across Pakistan in recent weeks. Last Thursday (Oct. 9) a suicide bomber injured eight people in an attack on an Islamabad police station. In September another suicide bomber killed 50 people at the Marriott Hotel.

Motivations for the surge in attacks could be political as well as religious. Pakistani forces have been cracking down on militants in the nation’s tribal areas as the government has resolved to fight domestic terrorism.

The Pakistani military launched a three-week-long air strike operation in Afghanistan in August and killed more than 400 Taliban militants. Pakistan declared a cease-fire in September during Ramadan.

The militant attacks could also be in retaliation to recent U.S. bombings against Taliban targets within Pakistan, a source told Compass.

Inter-Services Intelligence Director Lt. Gen. Ahmed Shuja Pasha told Pakistan’s parliament on Wednesday (Oct. 8) that the Taliban had gained complete control over certain districts of the country. The military has attempted to regain control in a bitter struggle that has claimed the lives of 1,368 troops since 2001, according to the Pakistani Daily Times.

While Christians are worried about their safety, they stress that the Taliban is a threat to all Pakistanis, regardless of religion.

They urged fellow Christians to pray for the surging violence within the country to ebb.

“We ask a special prayer for peace in our country and that the terrorist elements who believe in violence would not succeed in killing innocent people,” Bhatti said. “Pray for Pakistani Christians – may God protect them and give them courage to remain strong in their faith and witness.”

Report from Compass Direct News