Figures released in October 1993 indicate that Victoria's 36.3 percent rate of teenage unemployment is the second highest in Australia after Tasmania and well above the national rate of 31 percent. The Australian government focuses on economic growth and not necessarily on full employment. Consequently, an underclass has emerged that is comprised of the most marginalized sectors of society, and many young people are members of this underclass. The effects of economic rationalism at the policy level and corporate management approaches at the administrative level have been disastrous in terms of social policy funding allocations and service provision and have created a climate of social injustice for young people. The process of social change in Australia must be encouraged so that youth have an opportunity to work and contribute to society. Data on public expenditures for labor market programs, education, and training and on unemployment rates are tabulated. 24 references and 2 tables