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COVID-19 and Tasmanian youth unemployment: a policy recommendation

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Abstract
The unemployment rate in Australia is expected to be at historically high levels because of the Covid-19 health crisis and policies associated with social distancing. 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 better incentives for upskilling the youth population in Tasmania. Achieving this imperative support will avoid a cohort of structural unemployment in Tasmania and higher income inequality.

Suggested Citation

  • Vespignani, Joaquin & Yanotti, Maria, 2020. "COVID-19 and Tasmanian youth unemployment: a policy recommendation," Working Papers 2020-07, University of Tasmania, Tasmanian School of Business and Economics.
    • Handle: RePEc:tas:wpaper:33344
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    1. Bruce Chapman & Matthew Gray, 2002. "Youth Unemployment: Aggregate Incidence and Consequences for Individuals," CEPR Discussion Papers 459, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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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

    Keywords

    youth unemployment; COVID-19; regional Tasmania;
    All these keywords.

    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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