New research focuses on whether a low-skill job for a young person is a ‘stepping stone’ or a ‘low-skill trap’.
The study, Starting out in low-skill jobs, examines the decision a young person must make after completing full-time education about the type of position they accept on entering the workforce. It is based on data from the 1998 base year cohort of the Longitudinal Surveys of Australian Youth (LSAY) published by the National Centre for Vocational Education Research (NCVER).
“There are three key questions which these young people must address after completing their full-time education.
“Do they restrict themselves to a position commensurate with their qualifications? If they take a low-skill job, will it help or hinder their career prospects? And if they are unable to find a job suited to their qualifications, how long do they wait?
”We know that a job that matches an applicant’s qualifications will lead to brighter prospects by the age of 25. Those who undertake a low-skill job that does not match their qualifications will incur a wage penalty at age 25,” said Sue Fergusson, NCVER’s General Manager, Research.
Ms Fergusson said it is clear that a young person facing the offer of a low-skill job is in a quandary: take it or wait in hope for a better offer. “But a low-skill job is better than no job,” she said.
The definition of low and high-skill jobs is based on the five skill levels – as allocated for each occupation by the Australian Bureau of Statistics (ABS) – with 1-3 classified as high. Levels 4-5 do not typically require post-school qualifications and are categorised as low-skill jobs.
The high-skill category comprises managers, professionals, technical occupations and trades. Among the low-skill occupations are labourers and machinery operators and drivers, most sales workers and remaining clerical and community and personal service occupations.
For a copy of Starting out in low-skill jobs, authored by Tom Karmel, Tham Lu and Damian Oliver, go to: http://www.lsay.edu.au/publications/2649.html
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