Government warned IR changes could increase youth unemployment

The Organsiation for Economic Co-operation and Development has warned the Federal Government that it needs to intervene quickly to prevent a sharp rise in youth unemployment.

The OECD has released a special report into the issue of youth unemployment in Australia, noting that between July 2008 and January 2009, unemployment among people aged 15 to 24 rose from 8.7% to 9.7%.

The report says that while the Government is to be applauded for its efforts to keep young people in the education system for longer, it is worried that the Rudd Government’s new industrial regime could make it harder for young people to break into the workforce.

“Care should be taken to avoid discouraging bargaining at the workplace level and pricing low-skilled youth out of entry-level jobs,” the report says.

But Workplace Relations Minsiter Julia Gillard has defended the Government’s new IR laws.

“People of course do support youth wages regimes, and we’ve kept the youth wages regime,” she told ABC.

“What we’ve got rid of is the ability of employers of anybody to strip away the safety net from anyone, including young Australians.”

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