Freelancing gives generation Y the chance to break job cycle

IT’S not easy being young and jobless in Australia.

It’s not easy being young and jobless in Australia.

You’re facing an unemployment rate of 13 per cent, and approaching 20 per cent in some states. Many employers aren’t interested in training you, and you’re often overlooked in favour of more experienced employees.

Under new welfare requirements you may be required to work 25 hours each week for the dole, and submit at least 20 job applications every month.

This won’t necessarily help you find a job. As Veronica Sheen from Monash University says, “There’s just insufficient jobs” to go around. Plus, on a work-for-the-dole scheme where you’re assigned menial work, it’s unlikely you’ll develop long-term career skills.

Predictable career paths are disappearing. Today’s competitive labour market has eroded job security and hastened the decline of the job for life. This means experienced employees are pushed back into the job market, often competing with young jobseekers.

UN Development Program administrator Helen Clarke says if we can’t put young people into work we will create a “generation of unemployed, alienated and disengaged youth — a time bomb”.

A new job market is emerging. Generation Y should look to their unique strengths for an advantage: independence, autonomy, adaptability, and a taste for adventure. These qualities are often represented as a problem, but in fact they fit perfectly with the demands of an emerging job market.

With faster internet speeds and better communication technologies, independent freelancing has emerged as a new means for young people to access work. Gen Y is increasingly turning away from traditional job avenues to find work through online workplaces such as Elance-oDesk and Guru. The online work industry is forecast to grow to between $18 billion and $52bn by 2020.

Work opportunities are now available online. By the end of this year, more than 120,000 Australian freelancers will be working on Elance or oDesk. The average hourly wage on these websites has increased by 21 per cent over the past two years to $29.50, compared with only a 5.6 per cent increase in the traditional economy.

While some people are moonlighting or supplementing their wages, an increasing number are earning a full-time income.

This represents a completely new channel for young people to access job opportunities and valuable work experience.

Freelancing is a serious option for career development. A large part of employability is skill development, an area in which Australia lags. This is especially true in economically valuable STEM skills (science, technology, engineering, maths). Australia is ranked a disappointing 73rd in science and engineering graduates on the 2014 Global Innovation Index, behind Uzbekistan and Myanmar.

Freelancing not only provides an income but it also helps young people refine their skills. By working with Australian and international clients freelancers develop highly sought-after skills that they sharpen through exposure to a global client base, and then bring this valuable knowledge back into the Australian economy.

Freelancing gives young people an opportunity to gain experience, develop skills and provides a chance to build a career.

Kyri Theos is the country manager for Elance-oDesk