Prime Minister Tony Abbott says young Tasmanians forced to leave the state to find a job should not complain.
Under new strict measures to be introduced in July, unemployed under 30s will not be able to access any financial assistance for six months and then must work for the dole.
Tasmania has a youth unemployment rate of 17 per cent which is even higher in the North West.
In Hobart this morning, Mr Abbott was unsympathetic about the prospect of people going interstate in their search for a job.
"If people have to move for work that's not the worst outcome in the world,'' Mr Abbott said.
"For hundreds and hundreds of years people have been moving in order to better their life. People came to Tasmania in order to better their lives.
"I don't think we should be necessarily heartbroken just because some people choose to move.''
Earlier, Mr Abbott was confronted by teachers protesting against the Coalition government's decision not to follow through on Gonski school funding agreements struck by the previous government.
On the $1.7 billion cut to Tasmania's health system over 10 years, Mr Abbott blamed Labor for failing to allocated enough funds to deliver the promised money to the state.
He indicated there may be some short term assistance provided to the state to ease the impact of the immediate $27 million cut in 2014-15.
''I can understand why the Premiers are anxious about it. The health ministers are talking to each other to try and manage the transition.
''The last thing that anyone wants to do is put the squeeze on a hospital system under pressure.''
He would not be drawn on the detail of the discussions.
''We will manage the system and try to ensure as far as is humanly possible it's not front line services that bear the brunt.''
Premier Will Hodgman has said the $27 million cut is the equivalent of closing 59 beds this financial year.