Youth Unemployment & What can be Done about it – Youth Employment Policy Niall OHiggins University of Salerno

Part I: Youth Unemployment What Is Youth Unemployment? What Is Youth Unemployment? Who are ‘The Youth’ Who are ‘The Youth’ – standard ‘UN definition’ – standard ‘UN definition’ – excludes ‘children’ – excludes ‘children’ – enlarged definition – enlarged definition

Youth Unemployment What is Unemployment? What is Unemployment? ILO (internationally accepted) Definition ILO (internationally accepted) Definition Without work Without work Willing & able to work Willing & able to work Actively seeking work Actively seeking work N.B. Not Registered Unemployment N.B. Not Registered Unemployment

Youth Unemployment Other Problems facing young people in the labour market: Other Problems facing young people in the labour market: Underemployment Underemployment Informal sector employment Informal sector employment Temporary work Temporary work & Is Unemployment really such a big problem?? & Is Unemployment really such a big problem??

Youth Unemployment Who is Unemployed? Unemployment is not spread evenly amongst young people Who is Unemployed? Unemployment is not spread evenly amongst young people Young Women Vs. Young Men Young Women Vs. Young Men Ethnic Minorities Ethnic Minorities Disabled Disabled Unskilled/Uneducated Unskilled/Uneducated

Youth Unemployment What are the causes? What are the causes? Aggregate Demand (insufficient Economic Growth) Aggregate Demand (insufficient Economic Growth) Low Level of Education/Inappropriate Skills Low Level of Education/Inappropriate Skills Population/labour force participation Population/labour force participation Too High Wages/excessively regulated labour market? Too High Wages/excessively regulated labour market?

Figure 1: Index of Real GDP in Europe & Central Asia, (1989=100)

Figure 2: Index of Total Employment in Europe & Central Asia, (1989=100)

Figure 3: Percentage change in the HDI,

Figure 4: Youth Unemployment Rates in Europe, 2001

Figure 6: The Ratio of youth unemployment rates to adult unemployment rates in Europe, 2001

Figure 7: Male & Female Youth Unemployment Rates, 2001

Figure 8: Incidence of Long-term unemployment (over six months), Young people & Adults, 2000.

Figure 9: Labour Force Participation Rates of Young People (15-24) in Central & Eastern Europe,

Figure 10: Percentage point change in labour force participation rates and gross enrollment rates of young people (15-24),

Figure 11: Informal sector as a Percentage of GNP, 1999/2000

Concluding remarks Various factors contributing to youth unemployment – main issues – aggregate demand, education/skills, labour market regulation? Various factors contributing to youth unemployment – main issues – aggregate demand, education/skills, labour market regulation? Problems for youth in the labour market are not just to do with unemployment Problems for youth in the labour market are not just to do with unemployment