Almost one in five young people have fewer hours of work than they want, with underemployment in the youth labour force at its highest level in 40 years.

When unemployment is taken into account, the proportion of people aged 15 to 24 who are either without work or enough hours of work is now at 31.5 per cent.

The so-called "under-utilisation rate" which combines unemployment and underemployment levels is higher than it was during the 1990s recession.

Josh Sandman, 19, is one of 659,000 young Australians who are either unemployed or underemployed – having some work, but wanting more hours.