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High youth unemployment in Australia is one of the major labour market issues confronting policy makers. Average youth unemployment rates in the Perth metropolitan region were over 15 per cent at the time of the 1996 Census, substantially higher than those recorded two decades ago. However, the burden of unemployment has not been borne equally by neighbourhoods within the metropolitan region. This paper shows that there are significant intergenerational rigidities in youth employment outcomes in the Perth region. It appears that the demographic characteristics of neighbourhoods are a significant causal factor in the employment outcomes of youths. The implication for policy is that the targeting of individuals at risk of unemployment may not be appropriate unless the relationship between youth unemployment, region and demography is taken into account.
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