Global Crisis and Youth Unemployment

What is it about?

The paper shows that the impact of the Global Financial Crisis was to increase youth unemployment very significantly in Australia. This increase in youth unemployment was caused by a fall in aggregated demand in the economy. Although youth wages fell relative to adult wages youth unemployment increased as did long term youth unemployment.

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Why is it important?

Australia apparently avoided a recession (defined as a fall in GDP for two consecutive quarters) but there was a significant increase in unemployment, especially youth unemployment.