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European youth unemployment goes down

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According to seasonally adjusted figures released by EU statistics office, Eurostat, unemployment rate in September 2014 across the 28 member states was 10.1%.

The highest rates were observed in Greece where it reached 26.4%. The lowest unemployment rates were recorded in Germany, where only 5% of the total population did not have a job, and the highest in Greece, where more than one out of five citizens was unemployed (26.4%), followed by Spain with 24%.

Compared with August 2014, people without work have decreased by 108,000 in the European Union and by 19,000 in the Eurozone. Compared with September 2013, unemployment fell by 1.818 million in the Union and by 826,000 in the Eurozone. At the same time, in the 18-member Eurozone, unemployment was at a stable 11.5%, compared with August 2014, but down from 12% in September 2013.

When it comes to youth unemployment the highest rates are in Spain – 53.7% and Greece – 50.7%. In September 2014, 4.988 million young persons (under 25) were unemployed in the EU, of whom 3.340 million were in the eurozone. Compared with September 2013, youth unemployment decreased by 595,000 in the EU and by 213,000 in the eurozone. In September 2014, the youth unemployment rate was 21.6% in the EU and 23.3% in the eurozone, compared with 23.5% and 24% respectively in September 2013.

The Youth Guarantee – an essential investment for the future

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László Andor, European Commissioner for Employment, Social Affairs and Inclusion, talked at the Italian Presidency Conference on Employment in Milan on the Youth Guarantee as an essential investment for the future.

According to commisssioner, unemployment among young people is still very high. At 21.6%, the EU youth unemployment rate is over twice the overall rate and varies strongly across Europe: it ranges from 7.6% in Germany to over 51.5% in Greece and 53.7% in Spain. Such divergences in youth unemployment rates threaten the economic stability of the monetary union, and undermine social cohesion and the political confidence of an entire generation.

László Andor promoted the Youth Guarantee as a key structural reform. Alongside supply-side measures such as tailor-made job-search guidance and training courses, Youth Guarantee schemes entail measures to boost demand for young people’s labour, such as well-targeted wage or recruitment subsidies and apprenticeship grants.

In commissioner’s opinion investing in the Youth Guarantee is crucial for preserving the EU’s future growth potential. More recently the G20 strongly supported it and invited countries to step up implementation.

The economic value of the Youth Guarantee is related both to building up the human capital stock and to improving the flow of this human capital into and within the labour market.

The commmisioner emphasized that it pays off to ensure that young people quickly find relevant jobs, where their productive potential can be realised. For this, we need not only education and training but also good labour market flows. We need active labour market policies as well as measures stimulating demand for labour, such as targeted hiring subsidies.

Full text of the speech can be found here