Research Papers

Research Paper on Youth Unemployment

Youth unemployment is a type of marginalized unemployment of populations. It is one of the most important indicators of overall social situation of young people, as well as the exponent of its adaptation to the labor market at a certain stage of development of the country. Considering the fact that young people have a priori less experience, the process of integration of young people into the labor market deteriorates significantly during economic and financial crises, recession, etc.

In February 2013, the unemployment rate among young people in the EU was 23.5 per cent. In Portugal and Italy, it is approaching 40 percent, and in Greece and Spain, the youth unemployment rate is over 55 percent. The only country that manages to fight against youth unemployment is Germany. In this context, the ILO proposes to develop programs for youth employment, increase labor mobility, use social media to inform young people about the sought-after skills, and provide subsidies to the employers employing young people.

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The main problems of the youth labor market, according to employers, are inflated salary demands of young professionals and the lack of knowledge about the labor market under its own specialty and experience. As a result, some graduates do not find a suitable job or decide not to work in the specialty.

In EU, it is three times harder for unskilled workers to find a job than it is for those, who have a degree. Experts attribute this to the fact that the economy does not need unskilled labor: “40 years ago, such unskilled young people could work sailors. Today, there are no more such jobs.”

Speaking of the rest of young Europeans, more than 26 million of them were unemployed in February 2013. Experts note that in 2012-2013, the rate of decline in employment started to increase again. But to reach the pre-crisis level of 2008, European countries need to reduce the unemployment rate still at 4.1 percent.

The largest increase of the long-term youth unemployment rate (the absence of employment for more than one year) was recorded in Estonia, Ireland, Lithuania, and Spain. In such circumstances, there is a 30 percent increase of young people discouraged to find a work.

The International Labour Organisation has warned that the situation in the labor market increases the risk of social unrest. It has grown dramatically in Cyprus, the Czech Republic, Greece, Italy, Portugal, Slovenia, and Spain, but declined in Belgium, Germany, Finland, Slovakia, and Sweden.

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