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  • Dire outlook for youth employment

    - The UN International Labour Organization warns that the Eurozone is in danger of losing an additional 4.5 million jobs over the next 4 years. Young people would particularly suffer from that. Scandinavian countries show how youth unemployment can be tackled with training and education.

    The United Nations agency International Labour Organization (ILO) published a report offering a dire outlook for youth employment in Europe. By now the Eurozone unemployment rate has climbed to 11%, equivalent to 17.4 million jobseekers. The ILO analysts forecast that another 4.5 million jobs may be lost over the next four years if policymakers do not correct their austerity measures.

    "Some countries have been hit more severely than others. Job losses were especially acute in southern Europe. Austria, Belgium, Germany, Luxembourg and Malta are the only countries where employment is now higher than in 2008. However, even in these countries, there are signs that the labour market situation may no longer be improving."

    A €21 billion program for the whole Eurozone

    Of great concern is the rising youth unemployment: "Young people are increasingly at risk of a scarring first experience in the world of work, which could affect them for the rest of their life. In April 2012, the youth unemployment rate in the Eurozone was over 22 per cent. It exceeded 30 per cent in Italy, Portugal and Slovakia and was over 50 per cent in Greece and Spain. Youth unemployment rates also remained relatively high in successfully performing countries, such as Belgium and Malta."

    Sweden and Finland would stand out in this context with their youth guarantee programs. These track young unemployed citizens and help them finding a job or opportunities for academic or vocational education. At a cost of €21 billion (0.45% of Eurozone government spending) such programs could be implemented Eurozone wide.