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New Smith Family Report: Urgent need to support young people experiencing disadvantage to navigate career pathways

16 June 2025

As Australia looks to the next generation to fill key workforce shortages and drive productivity, a new report from The Smith Family reveals that many young people experiencing disadvantage are struggling to establish career pathways in the years after finishing school.

The fifth report from the Pathways, Engagement and Transition (PET) research project explores the post-school transition of nearly 800 low-income young people who were in Year 12 in 2020 and participating in The Smith Family’s Learning for Life program.

The findings provide a rare insight into how these young Australians navigated work and study over their first three years post-school.

While 87 percent of young people were engaged in work and/or study by their third year out of school, many were in insecure part-time roles with more limited opportunities for progression.

Of those who were working only, two-thirds were employed part-time, and nearly half were underemployed – wanting more hours than they were offered.

The report shows that both school experiences and young people’s initial transition experiences post-school are critical for their longer-term outcomes.

“The findings highlight the lasting impact of school experiences, including literacy and numeracy outcomes and access to quality career guidance,” says The Smith Family’s Head of Research and Advocacy, Anne Hampshire.

“They also show that early post-school engagement strongly influences longer-term outcomes. Young people who were in full-time work and/or study in the first year after school were much more likely to remain so in the third year, compared to those who struggled to engage in work or study in the first year.”

While 60 percent of young people had completed or were on track to complete a post-school qualification, this is well short of future labour market demands.

“With nine in ten new jobs expected to require a post-secondary school qualification by 2033, this gap represents a serious risk for both young people and the nation,” says Ms Hampshire.

“A range of personal, social and economic factors are shaping how young people experiencing disadvantage navigate post-school pathways. These include young people’s career management skills, their adult support networks, and their access to health and other services they need.”

The research identifies a range of recommendations to strengthen the post-school pathways of young people experiencing disadvantage.

“Young people were clear they needed individualised academic and social support while they were at school, high quality comprehensive careers education, and opportunities to increase their career-related adult networks,” Ms Hampshire says.

The report identifies that supporting family members to access up-to-date labour market, education and training information and investing in social services such as health, mental health and housing, are also needed.

Newly released data from the Organisation for Economic Co-operation and Development (OECD) reinforces the equity dimension. Among 15-year-old Australians:

Only 54% of low socioeconomic students aspired to a professional or senior role, compared to 80% of high socioeconomic students.
56% aimed to complete a university or postgraduate degree, compared to 85%.
Only 57% felt well prepared for life after school, compared to 70%.

Ms Hampshire says: “We know young people experiencing disadvantage often have fewer networks to help them navigate a rapidly changing labour market. Access to high-quality careers education – linked to the world of work – is critical for successfully transitioning into work and further studies. So is early, targeted and sustained support at school and beyond.”

“Jobs and Skills Australia figures show there are significant national workforce shortages, particularly in the education, health and trades sectors. These are areas which impact the lives of all Australians. With the right support and investment, we can ensure more young Australians experiencing disadvantage develop fulfilling careers, with longer-term benefits to both them and Australia as a whole.”

The latest Pathways, Engagement and Transitions report can be viewed here.

The PET research recommends:

Greater individualised support while young people are at school, including early intervention, for those struggling academically or socially.
Intentional and comprehensive career development learning throughout school and beyond.
Supporting family members’ access to up-to-date labour market, education and training information.
Providing opportunities to increase the social capital and career related adult networks of young people.
Identifying young people as a priority group in national and state/territory employment initiatives.
System investment in social services, such as health, mental health and housing that young people need

Media contacts:

Andrew Dickson | National Media Manager (National) - 0421 285 529 | andrew.dickson@thesmithfamily.com.au
Carla Horton | Senior Media Advisor (QLD & WA) - 0423 618 776 | carla.horton@thesmithfamily.com.au
Reid Jermyn | Media Advisor (VIC, SA & NT) - 0412 803 566 | reid.jermyn@thesmithfamily.com.au
Ben Chenoweth | Senior Media Advisor (NSW, ACT & TAS) - 0413 346 934 | ben.chenoweth@thesmithfamily.com.au

The Smith Family is a national children’s education charity that helps young Australians experiencing disadvantage to create better futures for themselves through harnessing the power of education. We partner with around 800 Australian schools and work with over 162,000 children and young people experiencing disadvantage access our education support programs to help them overcome . For more information, visit thesmithfamily.com.au