4102.0 - Australian Social Trends, 1997
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 19/06/1997
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Income Distribution: Youth income YOUTH EMPLOYEES AND EARNINGS, AUGUST 1985 AND 1995
(b) 1985 earnings adjusted to 1995 dollars using the CPI weighted average over the eight capital cities. Source: Weekly Earnings of Employees (Distribution), Australia (unpublished data), Labour Force Survey (unpublished data).
Trends in earnings from employment Compared to the mid 1980s, rather than entering full-time employment, more young people have been completing high school studies to the end of Year 12 and then going on to TAFEs and universities to enhance their career prospects (see Education - national summary table). After leaving school many young people also combine studies with part-time work (see Australian Social Trends 1996, From school to work). In the 10 years between 1985 and 1995, the proportion of youth aged 15-19 who were employed full time declined from 32% to 17%. Over the same period the proportion who were working part time nearly doubled, increasing from 14% in 1985 to 26% in 1995. The proportion of 20-24 year olds who were full-time employees also decreased from 60% to 53%. As with 15-19 year olds, part-time work has become more common for youth in the 20-24 year age group. These trends explain much of the decline in the average weekly earnings of employed youth. In real terms (1985 earnings adjusted in value to 1995 dollars) the average weekly earnings of employees aged 15-19 fell from $252 per week to $174 per week and for those aged 20-24 from $485 to $423 per week. However, the trend towards lower real earnings of young people has also been influenced by lower amounts of pay for both full-time and part-time workers. For example, the earnings of full-time employees aged 20-24 fell, in real terms, from an average of $511 per week in 1985 to $487 per week in 1995. Youth earnings have also dropped when compared to the earnings of older people. Between 1985 and 1995, the average full-time weekly earnings of 15-19 year olds relative to the earnings of employees aged 25 and over fell from 48% to 45% and for those aged 20-24, from 77% to 72%. Income distribution Not all youth have income of their own. Some depend on others, usually parents or partners, for their livelihood. For those that do have income of their own, many receive this income not from employment but from government cash benefits. In 1994-95, about one third of 15-19 year olds had no income. An additional one third had some low amount of income that was less than $100 per week. For older youth aged 20-24, the proportion with no income was much lower at 7%. An additional 9% had an income of less than $100 per week. In both age groups, the proportion of youth with no income was similar for men and for women. By the time youth have reached their twenties, many have substantial weekly incomes. In 1994-95, over half of males aged 20-24 had an income of more than $400 per week. A smaller proportion of women (37%) had incomes of over $400 per week. YOUTH INCOMES, 1994-95
(b) Of young people with positive total income. Source: 1994-95 Survey of Income and Housing Costs (unpublished data). Sources of income In 1994-95, most youth with any income obtained their income from paid employment. More than half (56%) of young people reported that their main source of income was from wages and salaries. However, one fifth of all youth were receiving government cash benefits as their main source of income. The wide disparities in youth income reflect differences in dependency status, differences in employment/student status and, associated with these, their different sources of income. The proportion of young people who reported that their main source of income was from wages and salaries differed according to their participation in education. For those who were not studying or who were studying part time, income from employment was by far the main source. In comparison only 28% of those who were studying full time reported income from wages and salaries to be their main source of income. 39% of full-time students reported having no income at all. These are most likely to be supported by their parents. In 1994-95, 89% of all full-time students in private households lived with their parents. The Australian Government provides a range of benefits to support individuals and families in need. Some payments made to families provide extra allowances for young people who continue to live at home as full-time secondary school students. However, other payments are made directly to young people themselves. Some income support payments such as the Youth Training Allowance (for unemployed people age less than 18) are specifically targeted to young people, while student allowances (paid through the Austudy and Abstudy schemes) are by nature mostly paid to young people (or if they live at home and under the age of 18 to their parents). Young people may, however, also be eligible for a range of other payments provided by the Department of Social Security. In addition to the Newstart Allowance (for those aged 18 and over actively seeking work) such payments include the Sole Parent Pension and the Disability Support Pension. While not necessarily their main source of income, almost a quarter (24%) of all 15-19 year olds received government cash benefits in 1994-95. Of these 65% (15% of all 15-19 year olds) received a study assistance payment making study assistance the main type of benefit received. A similar proportion (24%) of 20-24 year olds received income from the government. Almost half of these were receiving benefits related to unemployment. MAIN SOURCE OF INCOME FOR ALL YOUTH, 1994-95
(b) Of young people with positive income. Source: 1994-95 Survey of Income and Housing Costs (unpublished data). GOVERNMENT CASH BENEFITS, 1994-95 Source: 1994-95 Survey of Income and Housing Costs (unpublished data). Income support from family Most 15-19 year olds are still at school and are dependent on their parents as they have little or no income of their own. Numerous other young people also receive support from their parents to supplement their income. This support might be provided in many different ways (e.g. gifts of money, food, clothing, motor vehicles or assistance with housing rents). This assistance may continue even when they leave home. In 1992, 39% of 15-19 year olds who had left home received some form of income support from relatives living in another household. 20-24 year olds who had left home were less likely to receive income support from their family, with 28% receiving support. However, the likelihood of being given support differed according to the activity of the youth. Among full-time students who had left home 65% of those aged 15-19 years, and 61% of those aged 20-24 years received income support from their parents. Many part-time students and unemployed youth living away from home also received some support from their parents. INCOME SUPPORT FROM RELATIVES(a) FOR YOUTHS WHO DO NOT LIVE WITH THEIR PARENTS, 1992
(b) Some of these students may also be employed or unemployed.
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