News
BackA recently published study by the European Foundation for the Improvement of Living and Working Conditions presents new findings concerning youth unemployment in Europe. New criteria give an insight into causes and costs of Europe’s youth unemployment. The shockingly high number of young people out of work and the enormous costs, which the states have to deal with, should be a wake-up call for European policy-makers. The MEP Emilie Turunen regards the results of the study as reason to implement a radical change in policy.
Hard facts
Everyone is talking about record youth unemployment. At least every fifth young European is without a job. In some countries, for example Spain and Greece, every second young adult is affected by unemployment. The term “NEET” (not in education, employment, or training), introduced by the authors of the most comprehensive study on youth unemployment in Europe, describes young people who are neither in school education or vocational training nor in employment. The number of young people with NEET status in the European Union has risen by 28 % since the beginning of the Euro crisis in 2008. Some groups of young unemployed are more at risk to become NEET than others. Poor standard of education, a migration background as well as people with disability or health problems are represented above average in the NEET group. Hence, the question of wealth and poverty comes to the fore. Children from rich and well educated families are not part of the lost generation, says Donald Storrie, Head of the Employment and Competitiveness Unit at Eurofound, which carried out the study. The better off will find a way to get by; but those, who do not belong to the wealthy in society have significant obstacles to overcome. The so-called “lost generation” is closely linked with the imbalance of redistributing wealth in Europe.
High costs
The high number of young NEET meant that the EU had to spend 1.2 % of its GDP in 2011. The enormous, not only social but also budgetary costs of immense youth unemployment become particularly apparent in crisis-ridden European countries: Greece had to spend 3.28 % of her GDP to alleviate at least some hardship, Ireland 2.8 %, and Poland 2.04 %. Reducing youth unemployment could save countries with a huge deficit significant amounts of money, argues the study - and this is without adding the long-term costs of high unemployment to the calculations of the authors. In order to be consequent, the costs of juvenile crime and health problems as a result of unemployment have to be added to their calculations.
Urgent action needed
The authors of the study recommend that the Member States develop a uniform system in order to be able to evaluate measures taken so far. The Danish MEP Emilie Turunen, as did a number of other MEPs, felt vindicated by the results of the study. She requests a broad solution approach, from education policy via labour market policy up to economic policy. The dual education system, combining apprenticeship in a company with vocational training, shall be promoted and expanded. Internships must not be allowed to replace regular employment; they must be rewarded with a fair salary and be part of a training programme. Apart from that, a Europe-wide youth guarantee based on Austria’s example, financed by the European Social Fund is required. What is also needed are a coordinated European tax policy as well as a general rethinking of the economic policy. The current austerity policy, which is exclusively focussed on making cuts, will aggravate the problem of youth unemployment even further. Instead, priority has to be given to investments in growth and employment. The current economic model has to be rethought fundamentally. The alarmingly high and unacceptable number of young people out of work is certainly one of the greatest challenges at European level. A fact that cannot be denied: if the number of young people affected by unemployment is not reduced, Europe will have indeed lost an entire generation.
Eurofound Study on Youth Unemployment
Everyone is talking about record youth unemployment. At least every fifth young European is without a job. In some countries, for example Spain and Greece, every second young adult is affected by unemployment. The term “NEET” (not in education, employment, or training), introduced by the authors of the most comprehensive study on youth unemployment in Europe, describes young people who are neither in school education or vocational training nor in employment. The number of young people with NEET status in the European Union has risen by 28 % since the beginning of the Euro crisis in 2008. Some groups of young unemployed are more at risk to become NEET than others. Poor standard of education, a migration background as well as people with disability or health problems are represented above average in the NEET group. Hence, the question of wealth and poverty comes to the fore. Children from rich and well educated families are not part of the lost generation, says Donald Storrie, Head of the Employment and Competitiveness Unit at Eurofound, which carried out the study. The better off will find a way to get by; but those, who do not belong to the wealthy in society have significant obstacles to overcome. The so-called “lost generation” is closely linked with the imbalance of redistributing wealth in Europe.
High costs
The high number of young NEET meant that the EU had to spend 1.2 % of its GDP in 2011. The enormous, not only social but also budgetary costs of immense youth unemployment become particularly apparent in crisis-ridden European countries: Greece had to spend 3.28 % of her GDP to alleviate at least some hardship, Ireland 2.8 %, and Poland 2.04 %. Reducing youth unemployment could save countries with a huge deficit significant amounts of money, argues the study - and this is without adding the long-term costs of high unemployment to the calculations of the authors. In order to be consequent, the costs of juvenile crime and health problems as a result of unemployment have to be added to their calculations.
Urgent action needed
The authors of the study recommend that the Member States develop a uniform system in order to be able to evaluate measures taken so far. The Danish MEP Emilie Turunen, as did a number of other MEPs, felt vindicated by the results of the study. She requests a broad solution approach, from education policy via labour market policy up to economic policy. The dual education system, combining apprenticeship in a company with vocational training, shall be promoted and expanded. Internships must not be allowed to replace regular employment; they must be rewarded with a fair salary and be part of a training programme. Apart from that, a Europe-wide youth guarantee based on Austria’s example, financed by the European Social Fund is required. What is also needed are a coordinated European tax policy as well as a general rethinking of the economic policy. The current austerity policy, which is exclusively focussed on making cuts, will aggravate the problem of youth unemployment even further. Instead, priority has to be given to investments in growth and employment. The current economic model has to be rethought fundamentally. The alarmingly high and unacceptable number of young people out of work is certainly one of the greatest challenges at European level. A fact that cannot be denied: if the number of young people affected by unemployment is not reduced, Europe will have indeed lost an entire generation.
Eurofound Study on Youth Unemployment