How did the recession affect Australia’s Child Poverty rate?

During the Global Financial Crisis  (GFC) in 2008, the economies of most countries entered into a recession. The number of children that entered into poverty during the recession was 2.6 million higher than the number that have been able to escape it since 2008 (6.6 million, versus 4 million).  According to UNICEF around 76.5 million children live in poverty in the 41 most affluent countries around the world.


“Countries should place the well-being of children at the top of their responses to the recession. not only is this a moral obligation but it is in the self-interest of societies.”

After the recession, Australia’s NEET Rate which is the percentage of young people aged 15-24 why are currently not participating in education, employment or training increased.

The NEET rate went from 9.9 in 2008 to 12.2 in 2013.  High NEET rates suggest an interrupted transition from school to work, or from school onto further education, with long-term individual and societal costs. An increase in the NEET rate reflects the recession’s impact on the generation of young people. Compared to their parents these children have started loosing their chance for a productive adulthood.

The recession made it difficult for parents with children to get employed, pay their bills and mortgages. Children rarely manage to avoid the stress and suffering that is felt by the parents who endure unemployment or a significant reduction in income. Children face the downturns of family fortunes in multiple ways: both subtly and in painfully evident ways.


Imagine a child who suffers from slight and major humiliations in front of their friends and classmates. A child who aren’t able to afford buying school materials, can’t take part in after-school sport activities, play musical instruments or take part in other extra-curricular activities. In extreme circumstances, these children and their families can be forced to leave their homes and countries.

Poverty is a self-reinforcing vicious cycle.

A child with unemployed parents might not do as well at school. When this child isn’t able to do well in school, this might bring more stress back home. And on and on it goes…

The longer any child is locked in this cycle, the less chances they have to escape it.that is why we need to address this issue NOW!

Your Child Poverty Advocate,



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