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COVID-19 and Tasmanian Youth Unemployment: A Policy Recommendation

Vespignani, Joaquin L. and Yanotti, Maria Belen (2020): 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 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

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