Centre for Labour Market Research, Aalborg University, Denmark (CARMA)
Access to the Labour Market Youth Employment in Europe
Per Kongshøj MadsenCentre for Labour Market Research (CARMA)
Aalborg University, Denmarkwww.carma.aau.dk
Danish Presidency conference on “Youth: Employment and Inclusion in Times of Crisis”
Horsens, April 26-27, 2012
Overview
• Youth and the labour market• The risk of scarring effects• Why higher youth unemployment?• Which are the relevant policies to
support employment for young people?
NEETs in the EU
Dual training system
Job mobility of youth and adults
Romania
Greece
Netherl
ands
Slova
kia
Slove
nia
Czech Rep
ublic
Irelan
d
United Kingd
om
Bulgaria
Belgium
Portuga
lIta
ly
Hungary
Lithuan
ia
Poland
EU-27
German
y
Austria
France
Estonia
Finlan
d
Denmark
Swed
enSp
ainLat
via0
5
10
15
20
25
30
35
40
Perc
ent
Tenure < 3 monthsSource: Eurostat
Job mobility of youth and adults
Tenure < 3 monthsSource: Eurostat
1 2 3 4 5 6 70
5
10
15
20
25
30
35
40
f(x) = 4.29975405320478 x + 1.56375277870828R² = 0.563998939833122
25 years and above
15-2
4 ye
ars
Temporary employment
Source: ETUI, 2012 Youth: 15-24 years
Involuntary?
Source: ETUI, 2012
Geographic mobility
Source: OECD (2012): Economic Survey of the European Union 2012
Scarring effects
• Long-term effects on individual (un)employment• A rise in structural unemployment and negative
effects on growth and public budgets• Wage penalties (Effect of being unemployed for more than 6 months after
graduation, Danish data)
Percentage points
3 years 7 years 10 years
Vocational education
-10.3 -9.4 -9.3
Medium cycle education
-8.9 -8.7 -8.4
Long cycle education
-12.8 -12.4 -13.9
Source: AE, 2012
Leaving home
Chiuri & Boca, 2009
Blue: MenRed: Women
Flexicurity policies for young persons
• Support labour market mobility in general – thus creating more job openings also for the young–Economic growth!–Lower the fences between insiders and
outsiders on the labour market
Flexicurity policies for young persons
• Support critical transitions for young persons– A flexible and coherent educational system (without
blind alleys)– Monitoring and counselling of young persons from
secondary school to vocational and further education (reducing drop-outs)
– Dual training systems and internships integrated into education (formally or informally)
– Early intervention in case of unemployment, e.g. youth guarantee (reducing scarring-effects)
Make transitions pay for the young
• Support mobility across countries, regions and sectors– Transparancy and guidance– Recognition of professional qualifications across the EU– Access to housing and childcare– Access to (re)training – Support to ”ice-breaker”-schemes stimulating
untraditional job-openings for graduates (SME’s)– Provide safety nets and ensure portability of social
rights and pensions rights (e.g. unemployment insurance)
Something must be done!
• Milena Stoycheva, Bulgaria CEO of Young entrepreneurs – Junior Achievement Young Enterprise (JA-YE Europe)
• Pierre Echard, Novia Salcedo Foundation, Spain
• Santa Ozolina, European Youth Forum, Latvia • Wallis Goelen, European Commission • Jacques Dahan, Socio-economic Expert,
France
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