The Longitudinal Surveys of Australian Youth (LSAY) ask participants how satisfied they are with aspects of their lives. Their answers give us a measure of the subjective wellbeing of our youth and can be used to explore the link between education, employment and wellbeing. Yet, wellbeing is broader than satisfaction with life. It also encompasses physical, mental and emotional health, as well as social aspects of life. Therefore, to gain a better understanding of the state of young people's wellbeing, this briefing paper uses national statistics from the Australian Bureau of Statistics (ABS) to examine the major trends that can affect their participation in education and employment. Based on this broader definition of wellbeing, young people are generally disability-free and rate their state of health as "excellent", "very good" or "good". However, there are some concerning trends in their wellbeing over time; for instance, one in four young people suffers from a mental health disorder and over 30% are overweight or obese. This paper also analyses the responses of LSAY participants interviewed between 1995 and 2006 to explore how subjective wellbeing changes during the transition from school to work, and finds evidence of notable changes to the average life satisfaction ratings of the cohort between ages 16 to 25. The period between their late teens and early 20s is a particularly happy time for young people. They are finishing school and embarking on early work experiences or post-school study. The majority of them are still living at home and enjoying their social lives. This is also a time when young people's satisfaction with their future and their level of independence begin to grow. By age 25, young people are less happy with their social life, home life, and career prospects and work. This may be related to unmet expectations or not having a satisfying career. Data from the Household, Income and Labour Dynamics in Australia (HILDA) survey indicate that this downward trend in life satisfaction continues beyond age 25. Previous research on the relationship between education, employment and wellbeing is summarised and we discuss some of the measures of wellbeing, particularly those used in LSAY. This discussion highlights the need for further work on definitions of wellbeing and the development of a consistent framework for measuring this complex construct. (Contains 3 tables, 11 figures and 6 footnotes.)