The Australian government has claimed that it is doing all that it can to reduce the country's growing youth unemployment rate.

Responding to the findings of a report compiled by the Organisation for Economic Co-operation and Development (OECD), the administration of the world's smallest continent insisted that it was working to protect younger workers from the effects of the recession.

OECD's study urged the Australian Labor Party to implement nine recommendations to stem the tide of rising joblessness, including the reintroduction of individual contracts and ensuring that students do not leave school before the age of 16.

Julia Gillard, deputy prime minister, explained that is attempting to both secure jobs and protect the interests of young workers.

She told the Associated Press: "We've got the balance right to support the employment of young people with youth wages still part of our workplace relations system, but we've ended the ability of anyone to strip the safety net away from any Australian."

The Australian Employment Covenant for Indigenous people was launched last year with the aim of creating 50,000 jobs for this native community.© Adfero Ltd