It’s a similar picture elsewhere.
In the U.K., one-third of 18 to 24-year-old employees, excluding students, have lost jobs or been furloughed, compared to less than 15% of 35 to 44-year-olds, according to research from the Resolution Foundation think tank. Those in atypical jobs, such as zero-hour or temporary contracts, fare much worse. To qualify for Britain’s job support program you just had to be employed on or before March 19.
The casualization of so many jobs for Generation Z has its roots in the last financial crisis. Many entry-level roles were cut and never returned, forcing young people to stay in industries like retail or hospitality for far longer than previous generations, according to Shirley Jackson, a research economist at Per Capita, an Australian think tank that explores issues of inequality.
Going into the pandemic, more than 18% of Australian 15 to 24-year-olds were classed as “underemployed,” more than double the rate of any other age group in Australia and 7 percentage points higher than in 2008, according to Birch. That compares to 12% in the U.K., according to the nearest comparable data from the International Labour Organization.
“The narrative is that we don’t work as hard as our parents, we complain more than they ever did and that we waste our money on silly things,” said 25-year-old Greens Senator Jordon Steele-John, Australia’s youngest sitting member of Parliament. “There are far more people seeking to work than there are jobs for us.”
The crisis, and the Australian government’s response, also risks widening the wealth gap. Australian homeowners, for example, can apply to defer their mortgage payments under a huge program in place for at least another three months.
The temporary moratorium on evicting renters expired in mid-June in the most-populous state of New South Wales and they have largely been left to negotiate with landlords on their own.
“In these kinds of crises, we find out what is already broken,” Tenants’ Union Chief Executive Officer Leo Patterson Ross said. “This will increase the inequality already there between those who own property and those who don’t.”
Another option for those in dire straits is to access their pension savings. Normally near untouchable until retirement, the government has eased the rules on early access. There isn’t comprehensive data on just who is accessing the money, but signs are emerging of the young cleaning out meager pots.
Health industry pension fund Hesta says 18 to 24-year-olds who’ve claimed early release have taken out almost all of their savings. The median account balance for those in this age group who claimed early release has fallen nearly 80% to just A$1,050, Hesta said.