Preventing Scarring in the Post-Pandemic Youth Labour Market

by Nicole Adams, Dan Andrews, Josephine Auer, Erin Clarke, Zach Hayward, Gianni La Cava and Matt Nolan

The Australian labour market has rebounded strongly from the initial shock of the COVID-19 pandemic and the youth unemployment rate is close to a record low. But history teaches us that recessions can impart `scarring effects’ on the careers of young people for years after the event. This paper identifies priority areas where policy change could mitigate scarring – both following COVID-19 and in the aftermath of future economic downturns.