Youth unemployment and its impact on economic and social growth

ILO definition of youth unemployment

A country’s economic and social growth depends heavily on its young population, which is undoubtedly one of its greatest strengths and resources. Many young people have a lot of energy, bold ideas and innovations that can help shape the economic and social development of the country, but only if they are well coordinated and actively involved in it (Carvalho, 2015). Despite their importance, young people face a number of difficulties, one of which is unemployment. In both rich and developing countries, youth unemployment is a big problem. Due to high poverty rates in emerging countries, youth unemployment is of greater concern in these countries (ILO, 2011). The International Labor Organization (ILO) defines the youth unemployment rate as the percentage of the youth workforce that is unemployed. A person is classified as unemployed if at the time of the standard assessment they are: unemployed, currently employed and actively looking for work. In other words, the labor force includes both the employed and the unemployed (MercyCorps, 2020). The growth and development of a community can be affected if a large number of young people are unemployed. Unemployed youth are more likely to feel lonely, anxious and uncertain about their future if they are left unchecked by the youth unemployment problem (Crowley, et. associates, 2013). With more than 90% of young people living in low-income countries, the failure of millions of young people to believe in the possibility of a better life can cause weak countries to collapse (Mission Australia, 2010).

The City of Cumberland’s unemployment rate was 8.5% in the third quarter of 2021. The Employment Department aggregates the unemployment rate using data from the ABS and Centrelink Workforce Surveys. Small Area Labor Markets, a publication for local government, published quarterly (CommunityId, 2021). The problem of unemployment is a big concern and because of this a number of other problems like mental illness, suicidal ideation, etc. Have advantages. To solve these problems, research is crucial.

The study aimed to identify the causes and reasons for youth unemployment at the Cumberland Council of Sydney Australia.

  1. Determine the severity of the unemployment problem
  2. Explore the potential causes of youth unemployment in general and specifically in the Cumberland area
  3. Find the solution to unemployment in the youth generation
  4. What are the reasons and potential causes of youth unemployment?

How do we address this cause and these issues to address youth unemployment in Cumberland Council Australia? Economic, political and social factors all contribute to the idea of ​​unemployment in many respects. To define and quantify this idea, it depends on the economic, social and cultural context in which it is measured as well as on the educational system. The ILO defines the unemployed as those who do not work more than one hour in the short reference period, but are willing and able to do so. According to research, rich and developing countries have higher youth unemployment rates than adults. The high youth unemployment rate relative to the adult population is due to many factors, including lack of work experience and prior education, skills mismatch, and most people finishing high school in young age. The United Nations defines youth as being between the ages of 15 and 24. But the idea of ​​youth can mean different things in different parts of the world due to differences in cultural norms and traditions. and social behavior. The majority of young people in developing countries are still attending school, where they are acquiring the skills and information needed to enter the job market (Junankar, 2015).

Impact of youth unemployment on society

The prosperity of businesses, communities and countries benefit greatly from youth employment. Young people, despite their lack of work experience, are quick learners and can quickly adapt to the standards of the company they work for. Because of their good physique, they can work longer than adults. In addition, children have a longer payback period because they can stay with the company’s business longer than older employees (ILO, 2011). According to the International Labor Organization (2011), young people are more likely to spend more of their income on products and services that contribute to the overall economic growth of the country. However, people with stable jobs and higher salaries are more likely to save and invest their money or put it in the bank. As a result, the amount of money available to entrepreneurs who want to start a business or finance small and medium enterprises (SMEs) to help develop their country’s economy is increasing. According to Levine (2011), a country’s employment rate and economic progress are positively correlated. Productivity can only increase further if the workforce currently employed is expanded. Young people make up a larger proportion of the world’s population than any other demographic group, making them an excellent source of labor for expanding industries. In developing countries, youth employment is essential for the well-being of communities and their families. Educating young people is very expensive for society and families and they want them to be productive after finishing school. By easing some of the caregiving responsibilities for families, youth employment contributes to the development of the community at large. Youth employment contributes to poverty alleviation in families, as young workers contribute to this effort. Youth employment thus reduces the social cost to the country by reducing violence, criminal activity, drug abuse and prostitution (McLean Hilker and Fraser, 2009). Low educational attainment is considered as one of the main causes of youth unemployment, while improving education is seen as a solution. According to the National Commission on Education, Employment and Training, those without a college degree are more likely to be stuck in low-paying part-time jobs with no benefits or advancement opportunities.

The socioeconomic status of young people is often identified as one of the main causes of youth unemployment, limiting the opportunities available to them. In a 2021 IdCommunity and ABS Workforce study, the percentage of the working-age population that is unemployed is presented here as the unemployment rate, which is the percentage of the population in the working-age population. unemployed workers. To be considered unemployed, a person must be unemployed and actively looking for work. Unemployment is an important indicator of the economic health of an area. Unemployment can be low in prosperous areas where people have convenient access to employment, or it can be high in unemployment areas where people leave the area to find work. A high ratio may indicate a declining economy or a poor population in a particular neighborhood.

Unemployment rate of the city of Cumberland

The importance of youth unemployment has been demonstrated by previous studies conducted around the world. The determinants of youth labor market success and their impact on future social and economic development were examined in the study by Dimian (2011). According to the study’s findings, youth unemployment has an adverse impact on the country’s Gross Domestic Product (GDP). Unemployment insurance and labor cost taxes also have an effect on youth unemployment rates. Youth unemployment is less common in countries with a high proportion of agricultural workers. The choice was made according to the relevance of the methods. The researcher chooses research methods suitable to the research problem of the topic in order to achieve the research goals and objectives. In this study, the investigator chose Cumberland society as a case study to examine the causes of youth unemployment in this Australian city. Consistent with this, the author has made the following selections:

In this study, the research philosophy of hermeneutics was used to identify the participants’ perceptions, opinions, experiences, and perspectives. As a result, realism and positivism were shunned in favor of a more liberal approach to developing and testing hypotheses. Helps to understand information sensitively using the philosophy of interpretivism (Ryan, 2018). As a result, it helps the researcher to identify the underlying reasons for teenage unemployment. Two methods are accepted for collecting participant data and systematizing it: induction and inference. An inductive approach is used in this project to provide a more flexible approach for forming hypotheses and testing all variables. Deductive reasoning is used differently than inductive reasoning. This investigation does not require the development of hypotheses, which is the main goal of this section. It is possible to change the conduct of the investigation by solving the conceptual research problem and achieving its stated purpose (Woiceshyn & Daellenbach, 2018).

Using the survey method, the researchers are conducting a quantitative survey for this project. Qualitative methods were not used in this study as they would require observational data collection. The goal of research is to obtain accurate data while presenting it in a statistically valid manner. In addition, quantitative research design allows researchers to collect conceptual data related to their research question. It is a suitable method to carry out this study and obtain feasible results (Bloomfield & Fisher, 2019).

Regarding the research strategy for this project, the author made several important decisions. A variety of methods are integrated into the process, including literature review, experiment, survey, questionnaire, interview, case study, observation, and focus group, among others. (Atmowardoyo, 2018). During this research, the author uses a survey method to collect feedback from the participants in order to obtain their thoughts, views and perceptions about the research topic. Questionnaire method was used by the author in this study to collect data and conduct the survey. These approaches allow researchers to obtain effective amounts of data for investigation and analysis regarding their perceptions of the causes of youth unemployment from the Cumberland Council of Australia. An online survey allows the researcher to obtain useful data as quickly as possible, but the author cannot do so because it would take more time, money, and effort to collect the data in such a way. However, as a student during the covid-19 period, it is best to keep social distance. Google Forms was used to conduct an online survey. Causes of youth unemployment

When doing research, choosing a sample size is essential. If the target audience of the study is poorly selected, the quality of the paper will suffer and the results will be false. The researcher will take answers from 10 people with a non-random sampling method. Target respondents will be unemployed for whatever reason.

Primary research makes it easier for the researcher to use current and recent data for this project. As part of research, there are several ways to collect primary data, including surveys, focus groups, and questionnaires. However, the study chose the main approach to conduct the survey meaningfully among all other techniques that can be used to collect data (Fowler, 2013). These methods allow the researcher to collect enough data to investigate and analyze the purposes and objectives of the study.

For the purposes of this study and the selection of the aforementioned methods, descriptive and statistical analysis was the most appropriate method for data analysis. To present the truth, statistics are the best choice (Zook & Pearce, 2018). If statistical analysis is used, the data can be displayed in the form of graphs and tables. The researcher can also make sense of graphs and figures by performing descriptive analysis. Therefore, the use of these two studies of the study is very effective.

To meet academic requirements, all research conducted by individuals involved in this study must be cited by the author of the paper. Additional safeguards have been taken to avoid ethical issues such as plagiarism and piracy. The author’s duty is to protect the confidentiality of the information he generates. A total of ten people participated in this study, all providing original data. They are given a consent form to sign so they can see how interested the investigator is in protecting their privacy and where their efforts are going. In addition, the author has stored the data on a USB flash drive and kept it in a safe location so that no one can access the information. In this study, the author did not ask for any personal information such as name, phone number or email address, as this information could reveal the subject’s identity (Connelly, 2014).


This study is important because it addresses a major international and regional problem that it addresses. For this study, the investigator will conduct a survey using a questionnaire to determine the perception of people who are facing the problem of unemployment and its consequences. The data will be analyzed and discussed to come to appropriate conclusions and propose measures to solve the unemployment problem, from the competent authorities.


Atmowardoyo, H. (2018). Research methods in TEFL studies: Descriptive research, case study, error analysis, and R & D. Journal of Language Teaching and Research, 9(1), 197-204.

Bloomfield, J., & Fisher, M. J. (2019). Quantitative research design. Journal of the Australasian Rehabilitation Nurses Association, 22(2), 27-30.

Burrows, S. (2010). Youth unemployment in the Illawarra region. Journal of Australian Political Economy, The, (65), 88-105.

Carvalho, P. (2015). Youth unemployment in Australia. Policy: A Journal of Public Policy and Ideas, 31(4), 36-43. <>

Connelly, L. M. (2014). Ethical considerations in research studies. Medsurg Nursing, 23(1), 54-56.

Crowley, L., Jones, K., Cominetti, N., & Gulliford, J. (2013). International Lessons: Youth unemployment in the global context. The Work Foundation.

Dimian, G.C (2011). The Role of Education in Explaining Youth Labor Market Inbalances in CEE Countries. Journal on Efficiency and Responsibility in Education and Science, Vol.4, No.3, pp. 105-115

Etikan, I., & Bala, K. (2017). Sampling and sampling methods. Biometrics & Biostatistics International Journal, 5(6), 00149.

Fowler Jr, F. J. (2013). Survey research methods. Sage publications.

IdCommunity. 2021. Cumberland City: Unemployment. Cumberland City Council. <>

ILO (2011). Global Employment Trends for Youth, Geneva

Junankar, P. N. (2015). The impact of the Global Financial Crisis on youth unemployment. In Economics of the Labour Market (pp. 173-203). Palgrave Macmillan, London.

Levine, L (2011). Implications of the Anti-Poverty Program for Education and Employment, Vocational, Guidance Quarterly Vol.14, 8-18

McLean H.L and Fraser (2009). Youth Exclusion, Violence, Conflict and Fragile States, Report Prepared for DFID Equity and Rights Team, London: Social Department.

MercyCorps. 2020. Youth unemployment: a global crisis. <>

Mission Australia (Organisation). (2010). Youth employment: the facts.

Ryan, G. (2018). Introduction to positivism, interpretivism and critical theory. Nurse researcher, 25(4), 41-49.

Siedlecki, S. L. (2020). Understanding descriptive research designs and methods. Clinical Nurse Specialist, 34(1), 8-12.

Zook, K. L., & Pearce, J. H. (2018). Quantitative descriptive analysis. In Applied sensory analysis of foods (pp. 43-71). Routledge.

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