Youth unemployment is a notable and widespread complication in society, typically attributed to personal misfortune, economic change, and loss of opportunity (ManpowerGroup, 2012). The dramatic increase in youth unemployment rates, which currently stand at 12.7%, more than double the aggregate unemployment rate, originally began when the global financial crisis (GFC) erupted, resulting in falling domestic product levels gross (GDP) along with national income, making it difficult for young Australians to find work (Trading Economics, 2014). Today, 260,000 young Australians aged 15 to 24 are unemployed, 100,000 more than before the global financial crisis in August 2008 (Henry, 2014). There are various levels of inequality that support and increase levels of youth unemployment in 2014. For example, increasing variation in educational standards consistently increases levels of inequality due to selected schools in lower socioeconomic areas not having the resources or effectiveness of schools in affluent areas. This potentially leaves students with a relatively disadvantaged start to their careers and, furthermore, creates a lack or lower level of formal qualifications, a key element in obtaining employment (Pettinger, 2012). Furthermore, young people's lack of skills and experience is contributing to a lack of youth employment and young Australians are victims of the "last in, first out" policy, which has inevitably led to the youth unemployment rate being much higher than in the aggregate one. unemployment rate (Higgins, 2012). To combat high levels of youth unemployment, the Australian Government has established two main benefits to which unemployed young people are entitled, namely...... middle of paper ......fer of employment within 3 months ( European Commission, 2014) increases the amount of young people in the workforce, thereby increasing levels of economic output, which leads to a significant increase in economic growth, a key component of GDP and GNP. In closing, the general decrease in employment and youth welfare benefits justify that the age for eligibility, if it once existed, has already passed (Jericho, 2014). As seen in Figure 4 (Whiteford, 2013), there is compelling evidence to clearly indicate that the proportion of families on benefits as their main source of income is reducing overtime, meaning young Australians are becoming relatively less dependent on welfare benefits. Strong economic growth has played a huge role in reducing this dependency on social benefits and, with the solution proposed by the Youth Guarantee, youth unemployment will be further minimized.