Youth Unemployment

The Hon. D.G.E. HOOD (16:58): I seek leave to make a brief explanation before asking a question of the Minister for Employment, Higher Education and Skills.

Leave granted.

The Hon. D.G.E. HOOD: South Australia has the highest rates of stamp duty, land tax, water rates and electricity costs in the nation. Against this background South Australia has the highest rate of youth unemployment in the nation, as well as the highest rate of unemployment generally on the mainland, with only Tasmania being slightly higher. Soon, against this background, we will see the end of vehicle manufacturing at Holden's at Elizabeth, further compounding this difficult situation faced by our state. My questions to the minister are specific and require urgent answers:

1. What specific plans does the government have to reduce substantially youth unemployment in particular, especially in the northern suburbs in the wake of Holden's ceasing manufacturing?

2. Will the government give a commitment to this chamber that it will reduce the rate of youth unemployment from its current level exceeding 40 per cent to, say, something more in the vicinity of 30 per cent by the end of this four-year term?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (16:59): I thank the honourable member for his most important question. Indeed, the March employment figures were disappointing, with unemployment climbing here in South Australia, but that is why this government has a strong job plan in place. We went to the election with a clear, detailed plan as to how we are going to work through these issues.

In fact, the South Australian youth employment rate (15 to 19-year-old full-time unemployment) fell in March. I accept that these figures still need a great deal of work. However, our youth unemployment figures actually fell in the last month—7.4 per cent points, to 27.7 per cent in March, which is below the national average of 27.8 per cent.

I know that we need to treat these monthly figures with caution as they come out because there is always a great deal of volatility in the figures month by month. Although we are very pleased that youth unemployment fell last month, nevertheless we are still working very hard to make sure that we roll out our strategies to address the issues of unemployment, including youth unemployment. I think it is important to remember, particularly for those opposite, that they were not able to articulate a jobs plan for South Australia in the run-up to the last election, and that is one of the reasons why they are sitting there in opposition today.

We also know that most young people, in terms of looking at the unemployment figures themselves for youth, in that age group are not actually looking for full-time work, so the figures are somewhat inflated to reflect that in fact a significant number of people in that age group are students and they are training or studying or, for other reasons, do not wish to become full-time workers. When you adjust the figures accordingly, then the unemployment for youth is roughly similar to or a bit below that (in fact, 6.2 was one of the last lot I saw) compared with adult unemployment. When you look at that, it gives you a basis for comparison.

I think it is also important not to forget that the number of young people staying at school to year 12 is now at a 10-year high, and the percentage of young people staying at public schools from years 8 to 12 has increased, from 69.9 per cent in 2002 (a former Liberal government) to almost 91 per cent in 2013. We know that the factors that have the greatest influence in assisting to provide work, find work and also career paths, are training and skills and education. As a result, about 9,000 students have stayed on to year 12 in the last 11 years. As I said, we know that undertaking training and education drastically increases a person's chances of finding employment, so that is one part of our strategy as well.

Our jobs and skills plan will give more young South Australians the opportunity to learn and earn. Our Skills for Jobs training entitlement will give up to 20,000 South Australian jobseekers training to improve their chances of finding work. We have a jobs in regions program which will mean more job opportunities in local communities with local employers, local government and regional leaders working together—unlike the views espoused by those opposite, when we hear them say all the time that our state is not an attractive place to invest business. We know that the Liberal opposition likes to talk this state down time and time again.

It is pleasing to note that the Masters' chain of hardware stores just recently made the decision to invest $500 million in this state, and I am advised that they are looking to build 11 new stores in the next six years. A $500 million expansion decision has seen construction commenced, and the first two stores should be open by the year's end. The project is expected to bring some 3,000 construction jobs and around 101,500 retail jobs.

Members interjecting:

The Hon. G.E. GAGO: It is also pleasing to note that 30 per cent of Masters' national workforce—

Members interjecting:

The Hon. G.E. GAGO: It is 1,500 retail jobs. Masters' national workforce is aged under 25. DFEEST assists young people to be in full-time education, training, skills and employment, through our Skills for All program, with dedicated employment programs, traineeships and apprenticeships. We are training more people—

Members interjecting:

The Hon. G.E. GAGO: The opposition don't care about this. They don't care about youth employment. They don't care about what we are doing to improve opportunities for young South Australians so that that they can find jobs in this state and don't have to go interstate to find work. They don't care, as reflected in the recent election, which is why they are sitting over there on the opposition benches.