6 How do we compare?

It can be difficult to make international comparisons about welfare because of differences between social, political, historical and cultural contexts in which services are delivered. However, there are some areas in which information is sufficiently comparable to enable us to look overseas and ask—"How do we compare?"

We are younger than many developed countries

Australia's median age in 2009 was 37.6 years—in other words, half the population was aged 37.6 years or younger. This is two years younger than the median age across the OECD (the group of the most developed countries), putting Australia in the youngest third of the OECD group. Japan had the oldest population in the world, with a median age of 44.4 years.

Poor countries tend to have younger populations due to a combination of high birth rates and low life expectancy. Half of all people living in the least developed countries in the world were aged 19.6 or younger. The median age of the entire world population was 28.1 years.

So despite its ageing population, Australia is still relatively young for a wealthy country. However, by world standards we are quite old.

Median age, 2009

Welfare expenditure is slightly below OECD average—but relatively high for families

In 2007, Australia's total expenditure on welfare-related services and cash payments was 12.4% of gross domestic product (GDP). This is lower than the OECD average of 13.9% of GDP spent on welfare.

Expenditure on older people is the largest component of welfare spending in almost all OECD countries. However, direct comparisons are difficult because of differences between countries in funding models (such as pension schemes or superannuation for the care of older people).

A notable feature of Australia's welfare expenditure is the relatively high share dedicated to families. Around 2.4% of GDP was spent on payments and services to families (such as family assistance payments and child care subsidies)—almost double the OECD average (1.3%).

Welfare expenditure, 2007

Our high school students perform well

The OECD Programme for International Student Assessment (PISA) is conducted every three years across a number of industrialised countries. It looks at how well students nearing the end of compulsory schooling have acquired the knowledge and skills needed for full participation in society.

Australian students consistently perform better than the average for all OECD countries, in each learning domain tested. In 2009 the average result for Australian 15 year olds was 6th highest (out of 34 OECD countries) in reading, 7th highest in science and 9th highest in maths. Korea and Finland were the two top-performing OECD countries for reading and mathematics, while Finland and Japan had the best performance for science.

Average PISA score, 2009

But youth disengagement is still a problem

Most young people participate in education or employment, often in combination—for example, working part time while enrolled in full-time study. Young people who are not engaged in either work or study may be at increased risk of future unemployment and economic insecurity. In 2007, 6.5% of Australians aged
15–19 were not engaged in education or employment—ranking in the middle of OECD countries at the time.

Young Aboriginal and Torres Strait Islander people were less likely than their non-Indigenous counterparts to be fully engaged in education, employment, or a combination of work and study. In 2008, 41% of Indigenous youth aged 15–24 living in remote areas and 58% living in non-remote areas were fully engaged, compared to 83% of non-Indigenous youth.

15–19 year olds not engaged in education or employment, 2007

Labour force participation lags for 'prime age workers'

Patterns of labour force participation in different countries are affected by a range of factors including local economic conditions, rules concerning eligibility for retirement benefits and other forms of income support, participation in post-compulsory education, and the extent to which women remain in the workforce after having children.

In 2010, the labour force participation rate for Australians of 'traditional working age' (76.5%) was 10th highest out of 34 OECD countries. Younger workers (15–24 years) in Australia were engaged in the labour force at a greater rate than any other country, except Iceland and the Netherlands. The participation of people aged 55–64 was also in the top half of the OECD. On the other hand, the participation rate for 'prime age workers' (25–54 years) in Australia ranked 25th—in the bottom third of developed countries.

Labour force participation rates, 2010