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Left behind: transitioning to work getting tougher for early school leavers experiencing disadvantage

06 July 2026

New research shows more young people are leaving school early and they're less likely to be in full-time employment.

The rapidly changing labour market and lingering impacts of COVID are making it harder for young people to transition from school to work, training or further study, according to the latest Pathways, Engagement and Transition (PET) report by The Smith Family.

This new research compares two cohorts of students experiencing disadvantage (Year 10 in 2020 and Year 10 in 2023) and tracks their journeys as they move out of high school.

Key findings

More young people experiencing disadvantage are leaving school before Year 12: Young people in the Year 10 in 2023 cohort (18%) were leaving school before Year 12 at a higher rate than students in the Year 10 in 2020 cohort (14%).
Early school leavers are finding it harder to secure full-time work: Fewer early school leavers in the 2023 cohort (17%) were in full-time employment than the 2020 cohort (27%) eighteen months after the end of Year 10.
Fewer early school leavers are staying connected to work or study: Fewer early school leavers in the 2023 cohort (53%) were engaged in work or study after leaving school than the 2020 cohort (64%).

"Young people who left school before Year 12 are particularly vulnerable to worsening labour market conditions."
— Dr Kirsten Hancock, National Manager, Education Research & Insights

It’s important that they’re given targeted, coordinated support in their schooling to help them secure stable, meaningful pathways as they move into the workforce or post-secondary study or training.

Context

Young people who were in Year 10 in 2020 and 2023 progressed through their senior secondary years under very different circumstances.

The 2020 cohort experienced the most intense period of COVID-19 lockdowns and remote learning during Years 10 and 11, while the 2023 cohort experienced their deepest disruptions much earlier, in Years 7 and 8 when study habits, peer relationships and school routines typically develop.

Economic conditions surrounding school-leaving pathways also changed significantly. The 2020 cohort left school in a strengthening post-pandemic labour market in which youth unemployment was falling.

By the time the 2023 cohort reached the same transition point, the youth labour market had weakened. Unemployment for 15–24 year-olds had increased and employers in youth-dominated industries were advertising fewer jobs.

Why is this important? The transition from senior secondary school into work or further study is a critical period. It can shape a young person's future education and job opportunities.

For young people already experiencing disadvantage, further disruption during this period can have lasting consequences for later engagement in work and further study or training.

The shift in engagement outcomes revealed by the survey shows that providing quality, sustained careers support matters more than ever. This support is needed well before young people transition from school.

In a more difficult labour market—and after years of disruption—delays in support ultimately carry much higher costs for both student outcomes and the broader community.

Read the full 2026 PET Report

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 186,000 children and young people experiencing disadvantage access our education support programs to help them overcome. For more information, visit thesmithfamily.com.au