Explain why some groups in the Australian economy are more likely to experience higher rates of unemployment

Young People (15–24 years)

Limited experience and credentials. Young people entering the labour market often lack the work history and formal qualifications that employers value, making them less competitive against experienced applicants, especially for entry-level roles.

Industry exposure. Economic downturns disproportionately affect industries that employ young people, such as retail and hospitality. These sectors are highly cyclical and were among the hardest hit during COVID-19. 

Extended education. The slower growth in the 15–24 employment rate compared to other age groups may reflect delayed entry into the labour force as more young Australians stay in study longer, which can also leave them over-qualified for available entry-level work once they do graduate

Young People (15–24 years) stats

Cyclical industry exposure.

Retail and hospitality (the largest employers of young people) are highly cyclical and were among the hardest hit during COVID-19. Extended education delaying entry. More young Australians remaining in study delays labour force entry and can leave some over-qualified for available roles on graduation. NEET risk. In May 2024, 8.5% (288,000) of 15–24 year-olds were not in employment, education or training slightly above recent lows but below the 2015–19 average of 9.0%.

First Nations Australians

Geography. The proportion of First Nations people who were employed decreased consistently with increasing remoteness, from 58% in major cities to 30% in very remote areas. Remote communities have far fewer job opportunities and weaker local economies

Education gaps. Employment rates among First Nations people aged 25–64 rose from 24% among those with Year 9 or below to 85% for those with a bachelor degree or higher, illustrating how lower average educational attainment directly constrains employment prospects.

Discrimination. Discrimination in employment is common, affecting 12% of Aboriginal and Torres Strait Islander people. 

Intergenerational disadvantage. Indigenous populations face systemic barriers including discrimination, lower levels of educational attainment, and geographical isolation, along with historical disadvantage and intergenerational poverty

First Nations Australians stats

Employment dropped from 62% in major cities to 35% in very remote areas (2021 Census). Remote communities have far fewer job opportunities and weaker local economies.

Employment rates among First Nations people aged 25–64 rose from 24% for those with Year 9 or below to 85% for those with a bachelor degree or higher, education is the single strongest predictor of employment outcomes.

40% of First Nations people live without two or more basic essentials. Median weekly household income is 28% lower than non-Indigenous households, compounding employment barriers across generations.

People with Disability

30% of working-age people with disability who are unemployed have been out of work for at least a year, compared with 15% of working-age people without disability. Long-term unemployment makes re-entry progressively harder as skills atrophy and employer perceptions worsen.

Employer attitudes play a major role. Discrimination in employment affects 41% of people with a disability, the highest rate of any group measured. Despite this, 80% of unemployed working-age people with disability do not require any additional support from their employer to work, suggesting that employer reluctance is not grounded in the actual costs of accommodation
In 2022, the unemployment rate was 7.3% for people with disability vs 3.1% for those without. This has improved from 10.3% in 2018. 5% of full-time workers with disability leave full-time employment within one year, compared with just 10% of workers without disability.

Older Workers (55+ years)

Structural unemployment. Technological change and industry restructuring can make the skills of older workers redundant. Retraining is harder and less common at this career stage.

Age discrimination. Employers may prefer younger workers perceived as more adaptable or as offering a longer return on hiring investment.

Discouraged worker effect. Many older unemployed workers eventually exit the labour force entirely (becoming "hidden unemployed"), which understates the true challenge they face.

The 55–64 age group on unemployment payments has grown by around 100,000 since 2012 and is now the largest single age cohort on payments (195,000 people), partly due to the delayed access to the Age Pension since 2017.

Culturally and Linguistically Diverse (CALD) Groups and Migrants

Recent arrivals to Australia face challenges in the labour market; the unemployment rate for migrants and temporary residents was 5.9% in 2019, higher than the overall rate

Non-recognition of overseas qualifications. Skilled migrants often find their credentials are not formally recognised in Australia, forcing them into lower-skilled roles or leaving them unemployed while they pursue re-accreditation.

Language barriers. Limited English proficiency reduces competitiveness across most job categories.

Discrimination. Discrimination in employment affects 21% of people from CALD backgrounds.

Culturally and Linguistically Diverse (CALD) Groups and Migrants

Migrants from non-English-speaking countries had an unemployment rate of 7.9% in 2021, vs 4.2% for those from main English-speaking countries — a 3.7 ppt gap attributable largely to language and network factors. Recently arrived migrants have consistently higher unemployment than those resident for longer periods. Outcomes improve substantially over the first 5–10 years as networks, credential recognition, and language proficiency develop. 

People in Regional and Remote Areas

People living in regional, rural and remote Australia are identified as a high-risk group for employment instability. Regional labour markets are narrower, with fewer industries, less job turnover, and greater exposure to sector-specific shocks (such as drought in agricultural regions). Limited transport and access to training further reduces re-employment opportunities after job loss

In mid-2025, state unemployment ranged from 3.3% to 7.5%, with Tasmania consistently reporting the highest rates of any state, driven by its small economy and fewer large employers.