ManpowerGroup calls for action to address youth unemployment

New Insight Paper, “Wanted: Energised, Career-Driven Youth”

ManpowerGroup today outlined strategies to address the nation’s youth unemployment ‘crisis’, noting that young New Zealanders are almost four times more likely to be unemployed than the rest of the community. The youth unemployment rate (15-19 years) was 24.2 per cent in the December 2011 quarter compared to the national rate of 6.5 per cent.

A new insight paper by ManpowerGroup, “Wanted: Energised, Career-Driven Youth”, outlines how young people are bearing the brunt of global economic instability.

Lincoln Crawley, Managing Director ManpowerGroup Australia and New Zealand, said, “Many young people are employed in lower-skilled, casual and part-time roles - particularly in the retail sector. When the economy slows, these are often the first jobs to go,” he said.

ManpowerGroup points out that youth unemployment is not simply a social issue, but a business challenge.

“The rationale for getting more young people into the workforce is simple: businesses need to source, manage, and create talent for the long term, and with an ageing population, young people are a crucial part of this talent pool.

“Young people who are given access to learning opportunities and who can cultivate job skills will thrive in the labour market and contribute to employers. Ultimately, business has a vested interest in ensuring Australia’s youth are appropriately skilled and able to contribute to the economy,” Mr Crawley said.

The paper explains why young people face barriers to building their ‘employability’.

“Young people often enter the labour market with a lack of skills, experience and credentials relevant to the workplace, and haven’t had access to resources that might help inform their career choices,” Mr Crawley said.

The insight paper suggests a number of business-driven solutions to the youth employment challenge:

• Participation in career guidance programs for youth still in school: Employers should partner with schools and other vocational institutions to improve the quality and delivery of career services for young people, who are making important decisions about their future.

• Promote a more positive image for vocational education: ManpowerGroup’s Talent Shortage Surveys consistently identify technicians and skilled trades positions as hard-to-fill, and the Christchurch rebuild will continue to drive demand for these roles. Young people, especially those in danger of dropping out of school, need to understand the high demand that exists, and the competitive salaries available.

• Create and engage with programs that build young people’s work experience: Young people need to acquire experience that demonstrates to employers their capability in applying skills to business tasks. Internships, project work and short-term temporary work are superior alternatives to an extended period of unemployment.

• Investments to address a shortage of career-oriented, entry-level jobs: An important strategy for expanding the number of available jobs is to expand the number of job creators. Promotion of youth entrepreneurship can directly impact potential young business-starters themselves, as well as their peers and communities.

Mr Crawley emphasised the importance of flexibility when developing hiring strategies.

“In today’s talent-short market, it is unlikely companies will find the perfect candidate, so employers should be looking to take on candidates who are a “teachable fit”, and investing in training and support to get them over the line. This is true for all talent sourcing, whether you are looking at taking on young workers straight out of school or older workers looking for a career change.”

In New Zealand, ManpowerGroup partners with local councils to identify and work with unemployed youth, providing them with career guidance and practical information about job seeking.

“The key here is a strong collaboration between government, business and educators in developing and implementing these strategies in order to achieve results.”
ManpowerGroup’s new insights paper, “Wanted: Energised, Career-Driven Youth”, is available for download from www.manpowergroup.com/research/research.cfm.

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