An Incomplete Recovery: Youth Unemployment in Europe 2008 – 2016

Meyer-Hamme, Alexa and Thies, Lars and Meierkord, Anja (2017) An Incomplete Recovery: Youth Unemployment in Europe 2008 – 2016. UNSPECIFIED.

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Abstract

After having endured many years of economic decline and other problems as- sociated with the financial and economic crisis between 2008 and 2013, most EU member states have resumed their upward trend. This development is due primarily to ongoing improvements in the labour market1. Although not all EU member states have achieved their pre-crisis unemployment levels (EU average in 2008: 7%), the average unemployment rate has fallen from its high point of 11% in 2013 to 8.7% in 2016. Similar trends hold true in Europe for youth unemployment levels, which bears particular consequences for unem- ployment and economic growth overall. This paper takes a closer look at this topic and its development since the Great Recession, thereby highlighting the situation among different subgroups of young people in EU countries. Ten years ago, youth labour markets in Europe and beyond were hit hard by the Great Recession, leaving many young people to struggle with finding and retaining sustainable jobs in a protracted period of (multiple) recession(s). At the height of the youth employment crisis in 2012/2013, more than 9 million young people aged 15-29 across the EU were unemployed, 3 million more than in 2007. Since then, the youth labour market has improved, though perfor- mance indicators have not yet returned to pre-crisis levels. Since 2013, some member states have seen stronger improvements in this re- gard than others, although this varies among different subgroups of young people. Clearly, integrating young people into education, employment and training systems poses a long-term policy challenge for all member states. Persistent structural problems in European labour markets make an immi- nent, rapid improvement of the situation for young people unlikely. Further action is thus needed to support this demographic in fulfilling their potential in European economies and societies. The EU has responded to this youth employment crisis by proposing a range of successive policy measures. Its most prominent recommendations include the call to establish a Youth Guarantee2 and the Youth Employment Initiative. The Youth Guarantee shall ensure that young people have access to quality employment, education, apprenticeship or training opportunities within four months of becoming unemployed. The Youth Employment Initiative provides additional funding to tackle high rates of young people not in employment, education or training (NEET) in European regions most affected by youth unemployment.

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