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Photo credit: Peter Scholz/Shutterstock.com

The Globalist Quiz > Global Labor
Europe's Youth Unemployment Problem
 

By The Globalist | Monday, February 27, 2012
 

The prolonged eurozone crisis may have a particularly profound effect on the future prospects of young people in Europe. As economies stagnate, and governments have less money for support schemes, they face an uncertain future in the labor market. We wonder: Which country now has the highest level of youth unemployment?


Answers:

A. Greece
B. Spain
C. United Kingdom
D. France

A. Greece is correct.

Greece had the second-highest level of unemployment for young people under the age of 25 among the 27 EU members (as of the fall of 2011, the latest time for which data are available). Since the onset of the financial crisis in late 2007, the percentage of unemployed young Greeks has more than doubled, from around 20% to 45.8%, according to Eurostat.

However, in light of the deep economic crisis that has gripped Greece, it is very likely that this number has risen even higher. That would mean it now ranks in first place.

B. Spain is correct.

Spain, which has the champion soccer team in Europe, is also Europe's champion in a far less commendable category. At a rate of 48.7%, almost one out of every two young Spaniards are unemployed.

However, Spain has recently passed labor market reform measures intended to reduce the country's extremely high level of job protection. As in other European countries, very high levels of severance payments for dismissed workers and multi-year court disputes over individual firings may have benefited the older generation already employed.

But it has had a very negative effect on young people. Employers, wary of adding more permanent staff to their payrolls in uncertain economic times, have hesitated to give young people permanent full-time jobs.

C. United Kingdom is not correct.

The youth riots in several British cities in August 2011 indicated that there are severe unemployment problems in the UK as well, especially among immigrant youths.

More than one in five Britons under 25 are labeled as "NEETs" — not in education, employment or training. At 22.3%, the UK is right around the EU average of 22.1% — a number that underscores just how grave the problem is throughout Europe. The number for the United States is 17.5%.

D. France is not correct.

France, too, was gripped by youth riots in the suburbs back in the fall of 2005. At 22.8%, its youth unemployment rate is right around the EU average. In contrast, Italy's rate of youth unemployment (28.2%) is the highest among the original six countries that founded the EU. As in Spain, Italy's government is embarking on a series of labor market reforms designed to encourage employers to hire young people.

The only European countries with low rates of youth unemployment are Germany, Switzerland, Austria, the Netherlands and Norway, all in the 7-8% range. Most of these countries benefit from having very active apprenticeships systems, which combine on-the-job training with a multi-year course in technical training at a trade school.




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