The coronavirus recession will scar the employment prospects of people in their 20s and 30s, with research warning they may become trapped in low-paying, low-skilled jobs for years.
The Productivity Commission, in a report to be released on Monday, found work for young people would be scarcer, and taking on lower-quality jobs to get employment was likely to have long-term consequences for careers development.
Young people have suffered the largest increases in unemployment, and the biggest falls in jobs, since the advent of the pandemic.
In June, the jobless rate for those aged between 20 and 24 soared to 13.9 per cent, with almost 150,000 jobs disappearing since the start of the year. Among people aged 25 to 34, the unemployment rate has climbed by almost 3 percentage points to 7.5 per cent, with 164,000 jobs gone.