YOUTH UNEMPLOYMENT, DRAMA OR PEST?
Youth unemployment is one of the major problems affecting the current economic situation. From Europe to North America, through the Middle East, youth unemployment has risen to become a real epidemic that threatens the economic growth and social stability in the coming decades in dozens of countries.
Worldwide, about 75 million workers under 25 were unemployed last year, according to the International Labor Office. It is more than 4 million more compared to 2007. The recession has hit young people more than older assets because they have less work experience and companies can more easily do without them, especially when labor contracts are temporary.
The situation remains unchanged ...
Young people in Greece, Spain and Croatia have not seen great changes in the labor market in their countries in recent months. One of each two young people are unemployed and the entire European Union also doesn’t live better situation: the youth unemployment rate in European Union remains around 23%.
Also steps are taken to improve the situation. The European Union has launched two programs to help young people. The Youth Guarantee, approved by the European Parliament in January 2013, aims to ensure that youth under 25 years receive a job offer, training or internship not later than four months after their university or college graduation. The second program is the Youth Employment Initiative. The project supports regions where youth unemployment exceeds 25 percent, and in which young people neither study nor work. The European Commission has already approved programs for France and Italy. Poland, Portugal and the United Kingdom have formally presented their programs.
... and it may even get worse
However, the projected decline in youth unemployment in the developed economies will not be enough to reduce the overall rate. It is expected that the impact of the Euro crisis will spread beyond Europe, affecting the economies of East Asia and Latin America. This is due to the decrease in exports to advanced economies.
In North Africa and the Middle East, it is estimated that youth unemployment rates remain above 25% in the coming years, and may even increase further in parts of these regions. In East Asia, the forecasts indicate that youth unemployment rates will increase 9.5% this year and to 10.4% in 2017. And in Latin America and the Caribbean and Sub-Saharan Africa, few changes are expected In short, the effects of youth unemployment remain very negative. It is a disaster for the economy that young unemployed lose their motivation and their knowledge and skills decay not being used (brain waste).
Reducing youth unemployment must be a priority within a responsible economic policy. There is no magic recipe and it can’t remedy the problem overnight. But it is necessary to set up medium-term solution acting simultaneously on three fronts: growth, labor reform and vocational training.
Juan Antonio Parrado Palomo