Combating Youth Unemployment: The latest European fad? CEPS Commentary, 14 June 2013

When examining youth unemployment in the broader context of its contribution to total unemployment in Europe, Daniel Gros finds in this new Commentary that the problem reveals a completely different picture from the one usually presented. Extreme figures on youth unemployment in the periphery hide the fact that the number of actually unemployed is rather small given that most youth in countries like Spain or Greece are not even looking for a job.

Unemployment is the scourge, not youth unemployment per se. The misguided policy preoccupation with youth. CEPS Policy Brief No. 294, 26 June 2013

This Policy Brief argues that too much effort and political capital is being spent by the Commission and member states on being seen to be doing something quickly about youth unemployment when, in fact, the structural measures proposed will only have long-term effects. Expectations of immediate relief are running well above what can be delivered, especially at the EU level. Given the macroeconomic situation, no policy option will deliver a significant dent in either youth unemployment or unemployment in general. The EU policies on the table that are supposed to have an immediate effect, such as increased lending from the European Investment Bank to SMEs for the hiring of young people, will only have a very marginal impact on youth unemployment. Moreover, this impact will come mostly to the detriment of older unemployed persons excluded from such a scheme. Given the perceived need to ‘be seen to be doing something’, we fear that policies subsidising young workers de facto at the expense of older workers or, even worse, policies that subsidise older workers for not taking young people’s jobs, will proliferate. In fact, it is not at all clear that young people suffer more from being unemployed than older people, or even disproportionately more than older unemployed individuals. In particular, it is not clear that the much-publicised notion of a ‘lost generation’ with permanent ‘scars’ is relevant only to the young generation. The paper ends by highlighting the much-neglected policy option of encouraging labour mobility within the internal market. Although the Commission is ‘upgrading and modernising’ its tools, much more could be done in this area – to the benefit of the individuals concerned, the member states, and European integration in general.

La disoccupazione giovanile in tempo di crisi: un monito all’Europa (continentale) per rifondare il diritto del lavoro? = Youth Unemployment in Recessionary Times: a Caveat to (Continental) Europe to Reconstruct its Labour Law. WP C.S.D.L.E. "Massimo D'Antona" .INT - 91/2012

The current debate taking place in continental Europe on the need to reform labour law to reduce the duality between labour market insiders and outsiders, thus giving new employment opportunities to young people seems to be, at its best, a consequence of the crisis, or at its worst, an excuse. The considerable emphasis placed on the power of legislation to reduce youth unemployment prevents real labour market problems from being clearly identified, thus reducing the scope to adopt more effective measures. Action is certainly required to help young people during the current crisis, yet interventions should not be exclusively directed towards increased flexibility and deregulation. This paper questions the “thaumaturgic power” wrongly attributed to legislative interventions and put forward a more holistic approach to solve the problem of youth employment, by focusing on the education systems, school-to-work transition and industrial relations. As a comparative analysis demonstrates, in order to effectively tackle the issue of youth employment, it is not enough to reform labour law. High quality education systems, apprenticeship schemes, efficient placement and employment services, cooperative industrial relations and flexible wage determination mechanisms are the key to success when it comes to youth employment, not only in times of recession.

One year after the Youth Guarantee: Policy fatigue or signs of action? EPC Policy Brief, 27 May 2015

In April 2013, the EU Council called on EU member states to establish Youth Guarantee (YG) schemes, ensuring that “all young people under the age of 25 years receive a good-quality offer of employment, continued education, apprenticeship or traineeship within a period of four months of becoming unemployed or leaving formal education”. Implementation was meant to start more than a year ago, but political interest seems to have waned a bit. Is a ‘policy fatigue’ contaminating youth employment policies across the EU? Have some timid signs of economic recovery led to youth unemployment being less urgent or are we witnessing the usual policy developments whereby grand EU statements are worn down by political realities and resistance on the ground? In this Policy Brief, Claire Dhéret and Martina Morosi assess the implementation of the Youth Guarantee and provide suggestions on how to renew a sense of enthusiasm for such an ambitious tool across Europe.

Time to move north? CEPS Commentary, 27 May 2013

A staggering one out of every four young people is presently unemployed in Spain. And comparable numbers in Greece, Portugal and Italy are hardly more encouraging. Germany, on the other hand, enjoys a historically low youth unemployment rate of 8% and is experiencing skill shortages in some occupations. Against this background, this Commentary calls upon the European Commission to use its considerable strength and know-how in bringing partners and stakeholders together in order to facilitate the necessary infrastructure to allow better matching across borders of workers and employers. The authors point to the June European Council meeting as offering a good occasion to launch initiatives to this effect.

The growing intergenerational divide in Europe. Bruegel Policy Contribution Issue 2015/17, November 2015

During the economic and financial crisis, the divide between young and old in the European Union increased in terms of economic well-being and allocation of resources by governments. As youth unemployment and youth poverty rates increased, government spending shifted away from education, families and children towards pensioners. To address the sustainability of pension systems, some countries implemented pension reforms. We analysed changes to benefit ratios, meaning the ratio of the income of pensioners to the income of the active working population, and found that reforms often favoured current over future pensioners, increasing the intergenerational divide. We recommend reforms in three areas to address the intergenerational divide: improving European macroeconomic management, restoring fairness in government spending so the young are not disadvantaged, and pension reforms that share the burden fairly between generations.

Energy across the Mediterranean: a call for realism. Bruegel Policy Brief ISSUE 2016/03 APRIL 2016

Political instability in the southern Mediterranean countries have highlighted the unsustainability of their economic models. Widespread economic discontent, and in particular very high youth unemployment, underpinned the Arab Spring uprisings. As the refugee crisis shows, this is also Europe’s problem and Euro-Mediterranean economic cooperation needs to be reviewed. Energy is a key part of the cooperation framework.