New report frames youth unemployment as a 'systemic pipeline failure'
Australia is suffering from a youth unemployment crisis, according to AKG Australia, which revealed that the country's young professionals are more likely to be unemployed and underemployed compared with the rest of the population.
AKG Australia's 2026 Youth Employment Report revealed that the youth underemployment rate is at 14.8%, more than double the 5.9% experienced by the general population.
It paints a grim picture for the future of young professionals amid a variety of structural barriers, including poor expectations from employers.
"Australia is facing a youth employment crisis. Young people aged 15 to 24 are 1.3x more likely to be unemployed and 1.5x more likely to be underemployed than the general adult population," AKG Australia said on LinkedIn.
Barriers to youth employment
These statistics come in the wake of various behavioural and performance-related concerns from employers when it comes to employing young people. They include:
- Lack of commitment (62%)
- Differing expectations of effort and focus (59%)
- Lack of experience (58%)
- Reliability issues (56%)
- Mismatched expectations around hours and flexibility (36%)
Employers also consider youth labour as a "short-term operational solution" instead of a long-term workforce investment, despite recognising young people's flexibility, affordability, and responsiveness.
But the report argues that youth unemployment is structural, and not because they lack motivation.
In fact, the report found that the top barriers to employment for young people are:
- Transport issues (35%)
- Mental health (32%)
- Low self-confidence (32%)
- Not enough local job opportunities (25%)
- Lack of education, skills, or certifications (24%)
"It is a systemic pipeline failure," the report read. "Young people face compounding transport, confidence, and wellbeing barriers, while employers operate within systems that reward flexibility over progression."
Addressing youth unemployment
Addressing youth unemployment requires a whole-of-sector response that aligns youth readiness, employer demand, and system incentives, according to the report.
It recommended a redesign of employment services around sustainable pathways, and called for investment in pre-employment foundations such as transport, workwear, and confidence building.
The report also urged for the integration of mental health as a core design principle, and building labour market literacy among young people.
"We cannot fix a systemic pipeline failure by blaming youth motivation," said Karen Massier, executive general manager of AKG Australia, in a statement.
"Success demands a coordinated effort to replace fragmented entry-level roles with supported pathways towards permanent stability. Australia's future prosperity depends on whether we choose to bridge this gap now."
