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COVID-19 and Tasmanian Youth Unemployment: A Policy Recommendation

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  • Joaquin Vespignani

    (UTAS - University of Tasmania [Hobart])

  • Maria Belen Yanotti

Abstract

The unemployment rate in Australia is expected to be at historically high levels in Australia because of Covid-19 and policies associated with social distance. Youth unemployment is generally twice the general unemployment rate. Tasmania youth unemployment is likely to reach 25-30% by the end of the year as the main industries affected by this crisis are tourism and hospitality, which employ a large share of young workers. This will have a significant impact on future skills and social costs for years to come. The literature on youth unemployment indicates that long-term unemployment after high-school leads to higher structural unemployment, poverty, crime, drug and alcohol abuse and welfare dependency. Consequently, it is vital to provide good opportunities for upskilling the youth population in Tasmania by providing income support to those young Tasmanians to pursue further education, in particular those who historically are not engaged in tertiary education. Achieving this imperative support will avoid a cohort of structural unemployment in Tasmania and higher income inequality.

Suggested Citation

  • Joaquin Vespignani & Maria Belen Yanotti, 2020. "COVID-19 and Tasmanian Youth Unemployment: A Policy Recommendation," Working Papers hal-03078949, HAL.
    • Handle: RePEc:hal:wpaper:hal-03078949
    Note: View the original document on HAL open archive server: https://hal.science/hal-03078949v1
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    References listed on IDEAS

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    Cited by:

    1. Verdouw, Julia & Yanotti, Maria B. & De Vries, Jacqueline & Flanagan, Kathleen & Haman, Omar Ben, 2021. "Pathways to regional housing recovery from COVID-19," SocArXiv rbx49, Center for Open Science.

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    More about this item

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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