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Youth Unemployment in Youth Unemployment in Europe Europe Recent Trends and Initiatives to Tackle the High Youth Unemployment Jacques Dahan, Consultant 26/27April 2012 - Conference on “Youth: Employment and Inclusion in Times of Crisis” Danish Presidency of the Council – EU 2012
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Youth Unemployment in Europe

Dec 30, 2015

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Félix Serrano

Youth Unemployment in Europe. Recent Trends and Initiatives to Tackle the High Youth Unemployment Jacques Dahan , Consultant. 26/27April 2012 - Conference on “Youth: Employment and Inclusion in Times of Crisis” Danish Presidency of the Council – EU 2012. - PowerPoint PPT Presentation
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Page 1: Youth Unemployment in Europe

Youth Unemployment in Youth Unemployment in EuropeEurope

Recent Trends and Initiatives to Tackle the High Youth Unemployment

Jacques Dahan, Consultant

26/27April 2012 - Conference on “Youth: Employment and Inclusion in Times of Crisis” Danish Presidency of the Council – EU 2012

Page 2: Youth Unemployment in Europe

In 2011, European youth In 2011, European youth unemployment reached its highest unemployment reached its highest levellevel

In EU-27, in December 2011 5.5 Million young persons, under 25, were unemployed

Youth unemployment rate at 22.1% - + 1.1 pts compared Dec. 2010

Unemployment affects much more young persons than adults

• 2.23 times as high among young persons as in entire population

EU Unemployment rose faster among young people

241 000 more young people unemployed, compared with Dec. 2010 + 4.4% while EU total unemployment rose by 3.8%

Page 3: Youth Unemployment in Europe

YouthYouth unemployment heavily hit unemployment heavily hit Southern EU Countries in crisisSouthern EU Countries in crisis

Evolution Dec 2011/Dec 2010Evolution Dec 2011/Dec 2010

Youth Unemployment RateYouth Unemployment Rate

Situation Dec. 2011Situation Dec. 2011

Page 4: Youth Unemployment in Europe

Since 2007, negative developments Since 2007, negative developments in young people LM participation in young people LM participation

Decrease in youth employment rate (YER)

In 2010, YER 34%, ‘twice’ lower than for the “25 to 64” (64%) A rapid decline: - 3.3 points compared to 2007 (-1.2 pts for 25/64) ES, EL, IT combine a low YER and an important decrease since 2007 Deterioration in quality of jobs

Youth activity rate down Youth NEET is rising, and much higher than EU average in IT, ES, EL

Increase in youth emigration related to Labour Market exclusion since 2008 in EL, ES, PT, IT, IE

Page 5: Youth Unemployment in Europe

Differences increasing across Differences increasing across EU countries since 2011EU countries since 2011

2007 to 2010 : all countries except Germany experienced a decline in employment rates and higher unemployment rates of 15 to 24 years.

Since 2011, divergent trends in young people situation :

Improvement with increase in employment and decline in unemployment rate – Sweden, Austria, Finland, Germany,

Strong deterioration notably in Greece (unemployment up 10 points over one year), and Spain, but also in Italy, Bulgaria, Romania, Portugal, Poland.

Deterioration also in France and in the UK but to a lesser extent.

Page 6: Youth Unemployment in Europe

Tackling the high youth Tackling the high youth unemploymentunemployment

In recent years, all EU Member States have been actively engaged in designing and implementing policy initiatives that improve employability and participation in the labor market :

-Activation strategies The dominant approach in L.M. integration over the last decade Introducing mutual obligations in passive measures and developing

activation benefits

- Active Labour Market Policy facilitating the transition to work Special guidance services, tailored for young people Work-based integration : School-based integration Employer and Training subsidies.

- Measures aimed at improving efficiency of the labour market action to deliver qualitative services

PES modernisation and change Cooperation between relevant stakeholders and networking

Page 7: Youth Unemployment in Europe

EU Southern MS situationEU Southern MS situation

Problems facing young people / Labor Market are not new: - Low employment, high unemployment rate, inactivity - Issues of the relations between education and employment - Long and difficult transition between school and worklife - Lack of flexibility of the LM

The crisis revealed and amplified these structural difficulties

If all EU MS have recently introduced a wide variety of policy to deal with the challenges brought by the economic crisis, Southern EU countries do not have or have few the instruments that will enable the labor market to be more flexible and to better meet the needs of employers and more secure for youth unemployed

Page 8: Youth Unemployment in Europe

GreeceGreece

Horizon of young people is “blocked”- Sharp rise in youth unemployment, job insecurity, youth poverty- Inadequacy of the transition between school and work- Less social protection and security for the most disadvantaged- A rising and accelerated emigration with the crisis - From the "700 euro generation" to "500 euro generation"

Policies provide little response to youth unemployment issues-More labor market flexibility

-Authorization to extend the duration of labor, to turn full time to part-time, to unilaterally terminate a fixed term contract, …

- Active measures to facilitate LM integration : few, timid and not attractive- Business creation

- Training scheme contracts and relieve social contributions for companies attractive for companies, less for young people- Measures that do not target the NEET

Page 9: Youth Unemployment in Europe

GreeceGreeceChallenges

- Prevent young emigration- Secure the transition school/work- Strengthen work-based experience- Develop social dialogue in parallel with a more flexible labor

Market- Modernize PES and develop partnerships to better meet young

people needs- Target youth NEET, who are being excluded

Young Greeks and the crisis : the danger of losing a generation

"6 out of 10 young Greeks plan to leave for going to work in another European country," mainly in Germany and the UK. "Unless policies are adopted to address this problem, Greece could see many of the brightest minds among its young people leave the country".

Page 10: Youth Unemployment in Europe

SpainSpain

Main issues1. Relation training, work and housing, a crucial issue-Leaving home, a first step towards the emancipation-Since the entry into crisis in 2008, more and more young people returning to the parental home, notably the young unemployed2. Labor market unable to integrate young people-Youth LTU has increased sixfold in the period 2007-2011-High proportion of temporary contracts among young persons-A labor market not equipped to provide answers to problems and to meet the needs of young people including the poorest

Youth policies and responses to the crisis- A recent measure establishing the "base income of emancipation" (RBE), one of the few measures that directly address the needs of young people leaving home- A Program “”Temporary Assistance to unemployment and inserting” called Prepara was introduced in February 2010.

Page 11: Youth Unemployment in Europe

Spain ChallengesSpain Challenges1. More flexibility in the Labor Market and more security - Simplify and make more readable the labor regulation

- More consistency between temporary contracts and permanent contracts

2. Smoothing transition from school to working life- Closer cooperation between education system and companies - Skills of young people who leave the education system to meet the

needs of the labor market- Develop work-based and training-based integration with a focus to the NEET

- Strengthen measures aiming at young people financial autonomy and accessing housing

3. Implementing a comprehensive activation strategy - Closer cooperation between the autonomous communities and INEM (PES).- Increased effectiveness of employment services to unemployed youth, and early management and support ; management by Objective- Youth Outreach to PES support - Improve consistency of action between the INEM and private providers.

Page 12: Youth Unemployment in Europe

Italy Italy

1.Main issues: “ the 1000 euros generation", "lost generation"- Unemployment and LTU rate very high in 2011- The job insecurity has intensified: Less access to employment, reduced chances of moving to a more stable employment- Young people remain very late in family home, waiting for a stable job- NEET: the proportion has increased sharply, close to the Spanish situation- Quality of youth employment deteriorated

2.Youth policies in response to the crisis- Promoting apprenticeship: benefits to companies, less to the transition

between school and work- Encouraging entrepreneurship: Relevant fund to support employment and entrepreneurship combined with a micro-credit fund for businesses creation- Inclusion measures to the most disadvantaged (Since 2005, IRAP (Programma of azione per il re di-impiego lavoratori svantaggiati). Plan to return/access to employment based on individual skills and needs of local area, and bonuses for companies that hire.

Page 13: Youth Unemployment in Europe

Italy ChallengesItaly Challenges

-Reform the labor market with employment policies and welfare oriented towards young people

- Families plays a compensatory role for young people that does not promote social visibility of youth issues. The result is a large gap between the labor market reforms and social welfare policies entirely oriented to the family.

-Secure transition to working life -Combine work flexibility and stable jobs a transition period before reaching a stable job : Impact of labor flexibility has made more fluid access to employment while increasing significantly the precariousness of employment- More job insecurity for NEET

- Correct the mismatch between education and labor market demand-Italy 2020 : Combining active and passive measures “Action plan for youth employment through the integration of apprenticeship and work”

Page 14: Youth Unemployment in Europe

EU Southern MSEU Southern MS

The high rate of structural youth unemployment may, in the longer term, have tragic consequences, notably Southern European Countries and several NMS

A recent European Council stressed the urgency: "Each MS has agreed to develop a national plan for employment. This will include measures to shift the tax burden on labor and reduce labor market segmentation to improve the prospects youth employment and low skilled workers. "The committee "will form working groups with the eight countries (Spain, Greece, Ireland, Italy, Latvia, Lithuania, Portugal and Slovakia) that have a high rate of youth unemployment above average."

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