Youth unemployment is a notable and widespread complication in society that is generally attributed to personal unhappiness, economic changes and lost opportunities (ManpowerGroup, 2012). The drastic rise in the youth unemployment rate, which currently stands at 12.7%, more than twice the overall unemployment rate, began when the global financial crisis (GFC) erupted, leading to a decline in output gross domestic product (GDP) as well as national income. making it difficult for young Australians to find employment (Trading Economics, 2014). Currently, 260,000 young Australians aged 15 to 24 are unemployed, 100,000 more than before the GFC in August 2008 (Henry, 2014). There are different levels of inequality that underlie and increase levels of youth unemployment in 2014. For example, increasing variation in educational standards consistently increases levels of inequality, as some schools located in lower socio-economic areas are not as well-resourced or effective as schools in wealthy areas. This potentially leads students to a relatively disadvantaged start to their careers and further creates a lack or lower level of formal qualifications, a key element in obtaining employment (Pettinger, 2012). Furthermore, the lack of skills and experience among young people contributes to the lack of youth employment and young Australians are victims of the "last in, first out" policy, which has inevitably led to high unemployment rates for young people. young people much higher than the overall rate. unemployment rate (Higgins, 2012). To counteract high levels of youth unemployment, the Australian government has established two predominant benefits to which unemployed youth are entitled, na...... middle of paper ......fer from employment within three months (European Commission, 2014) increases the number of young people in the labor market, subsequently increasing levels of economic production, leading to a significant increase in economic growth, a key component of GDP and GNP. Social benefits for youth justify that the age of eligibility, if there is one, has already passed (Jericho, 2014). As shown in Figure 4 (Whiteford, 2013), there is compelling evidence that clearly indicates that the percentage of households with welfare benefits as their main source of income subsidizes overtime, meaning that Australian youth are becoming relatively less dependent on social benefits. Strong economic growth has played a major role in reducing the uptake of social benefits, and thanks to the proposed Youth Guarantee solution, youth unemployment will be further minimized..