Youth unemployment in Europe

The Statistical Office of European Commission (Eurostat) gives an insight view into latest data concerning the unemployment of young people in Europe. In February 2010, the youth unemployment rate (unemployed persons from 15 to 24 years) added up to 20,0% in the Euro area and 20,6% in the EU27, which started to increase since the start of the economic and financial crisis. Comparing the numbers with the data of March 2009, amounting to 19,0% and 18,9% respectively, it becomes obvious that the numbers increased by approximately 1 to 2 %. According to the numbers of February 2010, the lowest rate of unemployment within the young generation was observed in the Netherlands (7,3%), while the highest rate was found in Spain (40,7%). As a result, young workers are one of the main victims of the economic downturn.

Recently, the rate diminished by a boom in short-term temporary contract work amounting to approximately six million young people. Although it is an advantage for employers since they are not required to offer expensive benefits, these jobs created a generation of young people hardly employed without any benefits, severance pay or guarantee. Other possible side effects of youth unemployment are the lacking experience, qualifications, and self-belief to provide for themselves and their potential young families. Moreover, social effects, such as exclusion, depression, poorer health and higher incidences of crime can follow.

It is astonishing that not only teenagers or dropouts, but also people with college and graduate degrees are struggling to find a job.

In order to soothe the problem of the unemployment rate and short-term contracts, the European Union is thinking about launching a microcredit line, which is worth 100 million Euros. The goal is to help young people as well as long-term unemployed persons who are not able to receive a loan in order to start a business. Besides the aid of the EU, individual member states have launched their own programs to lower or even dismiss the youth unemployment rate. However, youth employment challenge depends on an integrated and coherent approach which combines not only the macro- but also the microeconomic intervention and which addresses both, labour demand and supply as well as quantity and quality of employment. It is important to face this problem in all relevant social, employment and economic policies through a well-balanced policy mix.

If the governments of the European Union or other interventions fail to soothe the problem right away, it is a question of time until the boom reverses itself, due to a precipitous drop in the young population in most countries by 2015, as it can be seen in the table below:

Title: Change in unemployment rate of young generation

Source: Lowrey

In a few years I will enter in labour market and I truly hope that until that time the youth employment situation will improve and so future for the young people will be brighter.

Advertisements

4 thoughts on “Youth unemployment in Europe

  1. Unfortunately, youth unemployment has become a serious problem in many European countries nowadays.
    As mentioned in the article, the country with the lowest percentage of youth unemployment is the Netherlands. Main reason for this in my opinion is that in the Netherlands, part-time job is very popular and most of the students are taking advantage of working part-time and studying in the same time.
    In my opinion countries like Spain, who have to highest percentage of youth unemployment also should take advantage of the “advantages” of part-time jobs.

    Reply
  2. For young it is particularly difficult to find first job and get some work experience. Young can´t get job without experience, but young can´t get experience without job. I think employers should support more young workers and appreciate their skills. Young can bring new perspectives and abilities to companies.

    Reply
  3. Unfortunately the unemployment rate of youth is increasing, although it reaches already more than 20%. It is incredible to experience that Spain has the highest rate within the EU. The reason probably lies in the fact that Spain sets not enough stimuli for young people. It seems that Holland is making more efforts to attract young people for work. Due to the boom the numbers decreased, but now young people work for bad conditions. As mentioned, there are some side effects and we should not jump over that. The idea of the European Union launching a microcredit line for those people is very beneficial and the efforts which were made by other countries are laudatory. I totally agree with your wishes for the future labour market! 🙂

    Reply
  4. Young people are the present and the future of Europe and a rich source of dynamism. However, the situation of young people who are studying and entering professional and adult societal life varies within each country, and even more so between countries at European level. As we can observe from article the lowest rate of unemployment within the young generation was observed in the Netherlands (7,3%), while the highest rate was found in Spain (40,7%). The data about unemployment of young people are concerned -20,6% (15-24 year) in EU-27 and is still increasing!
    Because of that the 27 Member States of the European Union adopted a resolution which puts into force a new EU Youth Strategy for 2010 – 2018. The resolution outlines the main goals for a long-term strategy for youth: creating more opportunities for young people in education and the labour market and promoting the active citizenship, social inclusion and solidarity of all young people.
    In some research has European Union found out that young people tend to be far more affected by unemployment than their elders, because unemployment rates were usually two to sometimes five times higher among those aged 15–24 than among the population aged 30–54.

    In my opinion in the time of crisis the most important thing is how many experiences you have in work, because the employer will rather employee the person with experiences in business or in other fields, as a educated person without any working skills. The young people should start to get their experiences maybe as a part-time work between the study. After this I think there should be no problem to find a job.

    I am really hoping that the future for employing young people is getting brighter as well!!!!

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s