A growing number of disadvantaged young Australians are leaving school before completing Year 12. Many are finding it increasingly difficult to find work or continue their education after they leave.
New research from The Smith Family suggests the transition from school to employment or further study is becoming increasingly challenging for young people already facing disadvantages.
The findings point to a growing concern for educators, community organisations, and policymakers: students who leave school early are not only more likely to disengage from education but also less likely to secure stable employment during the critical first years of adulthood.
More young people are falling behind
The Pathways, Engagement and Transition report shows an increasing proportion of disadvantaged students leaving school before completing Year 12.
Their post-school outcomes are also deteriorating. Just over half of early school leavers remain engaged in employment, education, or training. The proportion of securing full-time work within 18 months of leaving school has declined over recent economic cycles.
Completing secondary education has long been associated with stronger employment opportunities and greater access to further education and training. For young people who leave early, those pathways are becoming increasingly difficult to access.
Labour market pressures are making the transition harder
The report suggests these outcomes are being shaped by both educational disruption and changing labour market conditions.
Many disadvantaged students experienced significant interruptions to their learning during the early years of secondary school—a period when study habits, confidence, and social connections are typically established.
For students already at risk of disengagement, those disruptions can have lasting consequences. Once they leave school, they enter a labour market that offers fewer opportunities for young people with limited qualifications and experience.
Youth unemployment remains more than double the national average, while industries that traditionally provide entry-level employment continue to advertise fewer positions.
Dr Kirsten Hancock, National Manager of Education Research and Insights at The Smith Family, said early school leavers are particularly vulnerable during periods of economic uncertainty.
“Young people who left school before Year 12 are particularly vulnerable to worsening labour market conditions,” Dr Hancock said.
“They must be 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.”
Early intervention can change long-term outcomes
The research highlights the importance of supporting students well before they leave school.
Without timely intervention, educational disadvantages can compound over time, making it increasingly difficult for young people to reconnect with learning or establish sustainable careers.
Career guidance, mentoring, wellbeing support, and stronger connections between schools, training providers, and employers can help young people navigate the transition more successfully.
Providing this support before students disengage is likely to be more effective than responding after they have already left the education system.
Investing earlier benefits young people
For not-for-profit organisations, schools and governments, the findings reinforce the need for earlier and more coordinated intervention.
Helping disadvantaged students remain connected to education, training, or employment benefits not only young people, but also the broader economy and community.
As labour market conditions continue to evolve, improving post-school pathways will require more than creating jobs. It will also require ensuring young people have the support, confidence, and opportunities needed to access them.
Investing earlier in education and career pathways is ultimately an investment in Australia’s future workforce, and in the young people whose potential should not be defined by the circumstances they face.
Related story: Putting children at the centre: Activating hubs to fix a fragmented system
Ritchelle is Content Team Manager at Akolade, producing stories for Australia's not-for-profit sector at Third Sector.
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