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Youth Unemployment in ChinaAt the end of June 2022, statistics showed that youth unemployment in China was rising significantly to an unprecedented level of 19.3%. This is partly due to the slow growth (only 0.4%) of the Chinese economy in the second quarter of this year. Such a worrying scene could require powerful solutions.

Reasons Behind Rising Youth Unemployment in China

Nearly one in five young men is unemployed in China, a country with the second largest economy in the world. One of the greatest contributors to youth unemployment in China was the pandemic and the government’s relative lockdown policies. As the Chinese government made tight policies to control the number and spread of COVID-19 cases, major cities including Shanghai experienced large-scale lockdowns, affecting many economic activities.

For example, the retail sales in China have decreased considerably by 11.1%, which was its highest contraction value since March 2020, according to the BBC. An executive at Huawei, Richard Yu, has expressed his worry that if the lockdown persisted, the whole “technology, industrial and automobile supply chains” would come to a full shutdown. The poor performance of the economy in the pandemic made unemployment become more widespread.

Also, due to the Chinese government’s policies since 2021, most extracurricular tutoring was banned in China to lower pressure and discourage competition among Chinese students. However, as many private tutoring institutions had to shut down, teachers lost their source of income.

Chinese Government’s Effort to Solve the Problem

Fortunately, youth employment in China is not at a dead end. Circumstances can get better for those young people who are desperately seeking jobs.

The Chinese government was aware of this problem and already implemented some measures. On the one hand, the government made it compulsory for state-owned businesses and institutions to create new jobs for young graduates from higher education. On the other hand, universities are opening up temporary positions for their own graduates as emergency support, according to NZZ.

The Future

Although the unemployment figure was high in June, the Chinese labor market has already started to revive slowly since May. It may take some time for the reviving effect to lower the youth unemployment rate. As the government started to focus on tackling this problem for the younger generation, it started to provide subsidies and guaranteed loans for small businesses to help them overcome the financial difficulties that came with the pandemic lockdowns.

It was clear that the strict lockdown policies in China limited economic performance instantly. However, the economy is recovering steadily since the end of the second quarter of 2022. Consumer expenditures, including the key Chinese industry—vehicles, have experienced an impressive boost since June. In fact, economists from other countries still give high expectations for China’s future economic growth.

Hopefully, a more thriving economy could benefit the job market and ease the pressing problem of youth unemployment in China very soon.

– Ella Li
Photo: Flickr

Impact of COVID-19 on Poverty in Saudi Arabia
The impact of COVID-19 on poverty in Saudi Arabia is undeniable, especially when considering the growing unemployment rate. During the non-pandemic years, around 10%-20% of Saudi Arabians were in poverty and many of that number were women. However, Saudi Arabia’s government has not released specifics regarding poverty or homelessness.

COVID-19 in Saudi Arabia led to 8,591 deaths and 539,698 cases as of August 18, 2021. Additionally, the government administered approximately 32.8 million doses of the vaccine to Saudi Arabians. Saudi Arabia has a strict mask policy, requiring all people to wear a mask in all public places. Otherwise, unmasked individuals will receive a fine of 10,000 Saudi Riyals, which is almost $3,000.

Unemployment and Poverty in Saudi Arabia

The impact of COVID-19 on poverty in Saudi Arabia certainly begins with unemployment. The unemployment rate rose from 6.13% in 2019 to 8.22% in 2020 because of COVID-19. Most people in Saudi Arabia work in the oil and gas industry. Furthermore, the reduction of oil prices due to the pandemic caused the country’s economy to suffer and have significant layoffs. At the end of 2020, the unemployment rate in the gas and oil sector was 12.6%. However, it decreased to 11.7% at the beginning of 2021. The increase in layoffs made the job market more competitive. Unemployed men and women with no prior job experience must compete for jobs with people who have more work experience.

Furthermore, the pandemic severely affected women in the job market. Women are struggling because their main career areas are private-sector jobs such as retail and education. These types of jobs are core areas where the pandemic stay-at-home policies caused quite a shift. Additionally, half of the young Saudi women do not have employment and do not have education or formal training. COVID-19 is slowing the process for Saudi women to join the workforce. Closing schools and daycare made it difficult for women to work because someone needs to stay home with their children.

What is Saudi Arabia Doing to Help?

In 2016, the Saudi Arabian government created Vision 2030, a strategy to improve many aspects of the country by 2030. Tourism and women’s rights are examples of Vision 2030’s goals. However, the larger aim is to improve the overall life of people in Saudi Arabia. Concerning women and jobs, the goal is to encourage women to go to college and develop their talents. Saudi Arabia is making efforts for women to have more job security and improve their quality of life. In fact, from 2017 to 2020, the percentage of women in the workforce increased from 20% to 33%. Women having more job security and opportunities will make challenging events such as COVID-19 more manageable in the future.

According to the Vision 2030 plan, Saudia Arabia will address poverty. The plan also stated that “subsidies for fuel, food, water and electricity will be better utilized by redirecting them towards those in need.” The impact of COVID-19 on poverty in Saudi Arabia slowed down the progress of Vision 2030, but the strategy is still flourishing. Vision 2030 is important because it is building a stronger infrastructure for Saudi Arabia, especially for the poor and women.

– Shelby Tomassini
Photo: Flickr

Updates on SDG Goal 10 in ArgentinaIn Argentina, the COVID-19 pandemic and ensuing economic unrest has stalled efforts to close the inequality gap. Before the pandemic hit, Argentina was making progress on a series of Sustainable Development Goals (SDGs), which is a framework of global objectives created by the United Nations, designed as a “blueprint to achieve a better and more sustainable future for all” by 2030. The country was “well-positioned” compared to its Latin American counterparts, according to the Argentine Network for International Cooperation (RACI). The onset of COVID-19 has impacted updates on SDG Goal 10 in Argentina.

Achieving SDG 10: Reducing Inequality

Argentina had been struggling to achieve SDG 10, which focuses on reducing inequalities within a county’s population and among different countries around the world. To measure inequality, the SDGs use a scale of 0 to 100. The lower the score, the closer the country is to achieving economic equality. The goal is to achieve a ranking of 30 or lower by 2030. Before the COVID-19 pandemic, Argentina had a ranking of 51. The pandemic has siphoned resources out of the government and stalled updates on SDG Goal 10 in Argentina and other progressive reforms. On top of that, millions of Argentinians have lost their jobs and inequality is expanding as a result.

President Alberto Fernández

In December 2019, President Alberto Fernández won the presidential election over conservative incumbent, Mauricio Macri. President Fernández’s political style is that of his mentor, former president, Néstor Kirchner. However, “the COVID-19 pandemic might very well shatter the center-left president’s dreams of following in his mentor’s footsteps and bringing social progress and economic growth to Argentina,” writes Hugo Goeury.

Despite Fernandez’s progressive goals for his administration, reforms have all been put on the back burner since the arrival of COVID-19 in Argentina.

Poverty, Unemployment and the Wealth Gap

In the first half of 2020 alone, the poverty rate among Argentinians increased to almost 41%, the Americas Society/Council of the Americas reported, nearly a 5% increase from the previous year. The Central Bank is also predicting the GDP to contract by nearly 11%.

With almost a third of Argentine workers facing unemployment, President Fernandez is scrambling to financially support his unemployed constituents, while also negotiating the country’s debt owed to the International Monetary Fund (IMF).

According to the World Inequality Database, as of 2019, the top 10% wealthiest Argentinians controlled nearly 40% of the country’s income, while the bottom 50% only possessed 17.9% of the nation’s income.

Better Days Ahead for Argentina

Even though updates on SDG Goal 10 in Argentina seem especially challenging right now, Argentinians are still
pushing forward to make their country more equitable for everyone. The U.N. says, “In the post-pandemic world, Argentina must strengthen its productive apparatus and continue to eliminate inherited social inequities and those aggravated by COVID-19.”

– Laney Pope
Photo: Wikimedia Commons

Combat Poverty in RomaniaIn an effort to combat the nation’s longstanding battle with poverty, the Romanian Government passed 47 measures in 2015/16 to combat poverty in Romania through to 2020.

Poverty in Romania

At the time these measures passed into law, 40.2% of Romanian people were at risk of poverty and social exclusion. Furthermore, absolute poverty in Romania increased from 23.4% in 2008 to 27.7% in 2012. Low educational attainment, intergenerational transmission of poverty and lack of inter-regional mobility all contribute to the integral causes of poverty in Romania.

However, the Romanian government set a substantial and significant new precedent on how the nation combats poverty by adopting The National Strategy and Strategic Action Plan on Social Inclusion and Poverty Reduction for 2015-2020. These measures hope to reduce the many causes of poverty in Romania.

Key Measures:

  • Increasing employment rate through labor market activation programs
  • Increasing financial support for low-income individuals
  • Improving social inclusion of marginalized communities
  • Improving the functionality of social services
  • Reducing school drop-out rates
  • Scaling-up of national health programs
  • Integrating social assistance benefits with social services, employment services and other public services.

These measures were an encouraging shift in political focus that revolved around social benefits and a more community-based and integrated approach that generated widespread support. The World Bank supports these measures, commenting that these measures will strongly contribute to narrowing poverty gaps in the country.

Impact of Poverty Reduction Strategy

Since the adoption of these measures, monthly income per person increased by 10% between 2016 and 2017 and by 16% between 2017 and 2018, in part due to the increases in public-sector wages and improved minimum wages and tax cuts. As a result, poverty rates fell from 28.4% in 2014 to 15.8% in 2017.

Currently, the employment rate at 68.8% is approaching the EU 2020 target and is just below the EU average of 72.2%. Additionally, the unemployment rate is one of the lowest in the EU at 4.9%.

Implementation Delays Cause Concern

Although clear steps toward improving Romania’s struggle with poverty have emerged, these measures have received criticism as expectations have determined that many measures could have delayed or minimal results. These concerns were further exacerbated in 2017 when a change in government occurred. The political change delayed implementation and altered the original plan, putting full implementation in jeopardy.

In addition, more legislation is necessary to address the growing condition of the Roma minority group residing in Romania. A whole 78% of Roma are at risk of poverty compared to 35% for non-Roma citizens. Furthermore, 84% of Roma households do not have access to a water source, sewage or electricity. To successfully combat poverty in Romania, the Roma need to be prioritized.

Poverty Reduction Progress

While no single piece of legislation will be the end all be all to combat poverty in Romania, the anti-poverty measures passed in 2015/2016 have shown that a top-down, legislation-focused approach to fighting poverty can lead to progress, poverty reduction and improved social inclusion.

– Andrew Eckas
Photo: Flickr

cause of hungerThe COVID-19 pandemic is deemed a global health crisis that has resulted in an economic crisis and a hunger crisis too. In the Dominican Republic, Cabarete Sostenible seeks to address the root cause of hunger.

Unemployment Due to COVID-19

Cabarete, Dominican Republic, prides itself on being one of the watersports capitals of the world. Nearly two-thirds of Cabarete’s population depends on the local tourism industry for work and income. These jobs mostly fall under the informal economy.

Before the COVID-19 pandemic, more than 60% of the world’s working population were employed in the informal economy. The informal economy is defined by hourly jobs that offer neither a salary nor employee benefits. The pandemic left many people without a regular source of income and without health insurance.

Compared with the bailout packages that the governments of wealthy nations were able to provide to their citizens, the governments of impoverished nations were unable to provide citizens with such economic support. Around the world, NGOs have attempted to assist in providing the support that impoverished governments are unable to provide.

Cabarete Sostenible Addresses the Root Cause of Hunger

Moraima Capellán Pichardo, a citizen of Cabarete, is a supporter of the concept of food sovereignty. The Borgen Project spoke with Capellán Pichardo about the origins of Cabarete Sostenible and the organization’s long-term goals. Food sovereignty, the principle that individual self-actualization is dependent on having enough to eat, is at the heart of Cabarete Sostenible’s mission.

Capellán Pichardo told The Borgen Project that individual NGOs in Cabarete were working independently of each other when the COVID-19 pandemic began. These separate organizations had a common goal so they came together to form a coalition and increase their impact. This coalition became the nonprofit organization, Cabarete Sostenible. Everyone who works with Cabarete Sostenible is a volunteer. The organization works with local food distributors and organic farms and distributes the foodstuff that it receives to struggling families and individuals in Cabarete. This forms the organization’s first response to the hunger crisis.

Although it began as a method to address an acute crisis, Cabarete Sostenible seeks to address the root cause of hunger. Capellán Pichardo indicated that food sovereignty has been on the minds of Cabarete Sostenible’s volunteers and organizers since its inception. “Very early on, we sat down to discuss where we thought Cabarete Sostenible was going in the future. For us, we wanted to make sure that we did not just stick to giving out food because that does not really address the root problem.”

The Concept of Food Sovereignty

Food insecurity means being without reliable access to sufficient and nutritious supplies of food at any given time and is a common reality for citizens of Cabarete. On the other hand, food sovereignty, organizing society in such a manner that every individual has access to producing his or her own food, is a possible solution to food insecurity. “Food sovereignty is tied to land access,” Capellán Pichardo says. “For us, it is important that the first mission that Cabarete Sostenible focuses on is food sovereignty: access to healthy and appropriate food and using the native agricultural land to provide that.”

Food Sovereignty Addresses Food Insecurity

Since COVID-19, many factors have contributed to a rise in food insecurity and extreme poverty worldwide. Mass rates of unemployment have threatened access to food as even the poorest households spend close to three-fourths of their income on food.

Widespread unemployment, combined with unexpected drops in agricultural production, has created an unprecedented crisis. Because of supply line disruptions and trade barriers, often the result of increased health precautions, citizens of the world’s poorest nations are left without access to food. Some of the suffering caused by such disruptions can be mitigated by food sovereignty policies. Perhaps, a societal approach may be modeled after Cabarete Sostenible’s efforts to address the root causes of hunger.

Sustainable Community Solutions to Hunger

Capellán Pichardo is optimistic about the road ahead as she details how the organization has worked with local landowners to collaborate on solutions. The organization has opened the first community garden and is working to partner up to create a community-style farm. All this is work toward creating a social business model. Cabarete Sostenible seeks to address the root cause of hunger by helping to create a sustainable way of living, where food shortages are less likely and future hunger crises are averted.

– Taylor Pangman
Photo: Flickr

Hunger in SpainSpain is considered to be a developed country, however, some people in Spain still do not have access to adequate food and nutritional needs. In numbers, 26.1% of people were reported as being at risk of poverty in January 2020. The number can be linked to the direct and indirect effects of the COVID-19 pandemic. Over the past 20 years, Spain has shown remarkable resilience as a country, by weathering the 2008 recession and economic difficulties. Hunger in Spain is an issue that has been exacerbated by the onset of COVID-19 but initiatives are helping to address the problem.

3 Initiatives Addressing Hunger in Spain

  1. Minimum Vital Income. In the second quarter of 2020, Spain’s unemployment rate rose to 15.33%. Due to COVID-19, many people in Spain lost their jobs. A direct result of reduced employment in Spain has been a rise in food insecurity, which means that more people are struggling to put food on the table. To combat these difficult conditions, Spain’s government is proposing the introduction of ingreso mínimo vital (minimum vital income). This long-considered program has been kickstarted by need due to COVID-19. According to Spanish records shared with the EU, requests for government assistance due to COVID-19 reached seven million people. A national minimum income was introduced to provide people living in poverty with monthly assistance payments, allowing them access to food and other vital resources, much like the function of unemployment benefits in the United States. The money will provide financial aid to 2.5 million people.

  2. Colas del Hambre (Hunger Queues). In many areas across Spain, like Madrid’s suburb of Cuzco, lines of up to 700 people form around the blocks every day in order to receive food aid from food banks. This has become the daily reality for many people during the lockdown as people struggle to get enough food to eat. These food banks are widely distributed throughout the country, allowing people from many different areas and backgrounds access to assistance. Alba Díez works for the Neighbourhood Association of Aluche (NAA) in Madrid and reported that the organization had needed to quadruple the number of food packages it delivers to those in need in the space of just one month due to the pandemic.

  3. Solidarity Fridge. Another solution to the problem of hunger in Spain is the Solidarity Fridge. It both cuts down on food waste as well as helps people experiencing food insecurity to get enough food. The Basque town of Galdakao spearheaded the project, creating a communal refrigerator. Food can be either deposited or taken from the fridge, allowing those who would otherwise scavenge through trashcans for food, to eat perfectly good food that would otherwise be thrown away by restaurants, other people or grocery stores. There are rules and food safety protocols that must be followed and the fridge is regularly cleaned and maintained by the city. The program is a success and has helped many people during tough times.

These initiatives aim to alleviate hunger in Spain and help people experiencing food insecurity that has been exacerbated by COVID-19.

– Noelle Nelson
Photo: Flickr

Microsoft's Global Skills InitiativeIn the wake of COVID-19, economies across the world have been hit hard. Countries alike have seen decreases across all economic sectors as quarantine and stay-at-home orders were mandated in an effort to slow the spread of the virus. People transitioned to working remotely, while millions of others lost their jobs entirely due to market crashes. In an effort to cushion the economic travesty that the pandemic has bought, Microsoft is launching a global initiative, partnering with LinkedIn and Github, to teach 25 million people across the world new digital skills. Microsoft’s global skills initiative aims to remedy the global economic impact that has come with COVID-19.

Digital Skills

Microsoft believes these newfound digital skills will give people the ability to take on jobs where digital skills are necessary in order to be successful. The initiative targets those who have lost jobs due to the pandemic, as well as minorities, women and others affected by poverty.

Recent statistics predict that over 250 million people globally may be unemployed by the end of 2020 due to COVID-19. Microsoft found that in the U.S. alone, in May 2020, women had an unemployment rate of 14.4% compared to men who were at 12%. Additionally, Latinx populations had unemployment rates of 16.7%, which is much higher than other groups. These statistics indicate why the initiative particularly targets populations such as women and minorities.

By learning digital skills, those who are at an economic disadvantage will be able to take on jobs in the digital age and improve their economic status. Those who attain these newfound skills might even be able to teach others and distribute their knowledge to uplift an entire community.

Three-step Process

The three partnered companies have come up with a three-step process that they hope will encourage economic growth in communities across the globe. The first part relates to the Linkedin Economic Graph. The Economic Graph is a digital representation of the global economy based on more than 690 million professionals, 50 million companies, 11 million job listings, 36,000 defined skills and 90,000 schools. In short, it is data that shows available jobs and their required skills as well as global hiring rates. These insights will help create economic opportunities for the global workforce.

The second part consists of free tools, programs and content that people will be provided with, in order to learn the skills necessary for job applications. This initiative will give people free access to content from LinkedIn Learning, Microsoft Learn and the GitHub Learning Lab.

Thirdly, low-cost certifications and other cost-free job-seeking tools will be available to help people pursue new jobs with their newly developed skills.

Along with this digital skills initiative, Microsoft will be backing $20 million worth of cash grants that will be distributed across the globe to different nonprofit organizations. These grants will help nonprofits to combat the effects of the pandemic and allow the nonprofits to further extend reach in order to help more people.

Microsoft believes that global shutdowns and social distancing have accelerated the path to digitalization in all fields and economies. The company knows that digital tools are now necessary regardless of the field of work and will continue to be relevant far after the pandemic has passed. Microsoft’s global skills initiative may help the world’s economic recovery and may possibly uplift the entire globe during the COVID-19 pandemic.

George Hashemi
Photo: Flickr

Homelessness in EstoniaIn the mid-90s and early 2000s, Estonia, a country in Northern Europe, oversaw a housing reform. This reform sought to improve the living conditions for Estonians and reduce the number of people who were experiencing homelessness in Estonia. Here’s the situation today:

6 Facts About Homelessness in Estonia

  1. A small percentage of Estonians are homeless – The Institute of Global Homelessness reported that around 864 Estonians were homeless in 2011, which amounts to 0.06% of the population. However, in 2018, the European Journal of Homelessness estimated that 1.5% of Estonians are homeless, which amounts to between 1,900 and 2,100 people.
  2. Unemployment can be a major influence on homelessness in Estonia – A 2014 study in the European Journal of Homelessness found that 5.5% of Estonians are unemployed (2% of which reside in Tallinn, the capital.)
  3. Alcohol dependency can inhibit self-subsistence – The percentage of Estonians who are homeless with mental health issues is increasing, and some of these issues may result from alcohol dependency, alongside other factors. Alcoholism can make it more difficult for people who are trying to gain self-sufficiency.
  4. Testing (for respiratory diseases such as COVID-19) is insufficient for homeless shelters in many European countries – People in shelters who test positive for airborne illnesses must be isolated, according to a report by members of the European Federation of National Organisations working with the Homeless (FEANTSA), yet self-isolation is not always easy in shelters. In an Estonian shelter, after one individual in the shelter tested positive for COVID-19, testing was made available for the other residents, and 56% of those who lived in the shelter tested positive as well. FEANTSA argues that “housing must be reaffirmed as a human right” in order to help those who are experiencing homelessness in Estonia.
  5. Certain shelters and programs provide the homeless with residential services – Shelters like the one in Nõmme District in Tallinn provide the homeless in Estonia with a resocialization plan where residents work on gaining work skills to be able to afford residential spaces of their own. Half of the shelter’s residents pay their own fees that they gained from employment to stay in the shelter, and if a resident cannot pay, the city pays on his/her behalf. This plan lasts for six months, though residents are allowed to stay for longer if they aren’t able to afford their own place of residence at that time.
  6. Housing has improved for Estonians since the 90s – In 1989, there were more households in Estonia than there were residences. From 1994-2004, a housing reform took place, and by 2011, the number of residences was 16% greater than the number of households. Though factors such as rising rental costs can still make it hard for a struggling family to afford to live in their own residence, living conditions have improved overall.

As Estonia’s government has been working to reduce homelessness, programs that have helped reform housing have been effective in reducing homelessness in Estonia since the 1990s. Yet there is still work to be done – lessening the situations which cause homelessness is imperative.

Ayesha Asad
Photo: Unsplash

street vendors As the first country affected by COVID-19, China is now recovering from the pandemic. Businesses are reopening gradually and people are slowly returning to their normal day-to-day life. However, the pandemic triggered an increase in unemployment, rising from 5.7% to 6.2% in February. Since then, the government has been working to address this rapid rise. In addition to the expansion of civil servants and enterprises, the government is encouraging street vendors to help solve the problem of employment.

Economic Disparity

China has a large population of low-income citizens whose vulnerability is increased during times of crisis. This problem is not only an economic problem but also an issue of stability of sovereignty. During last month’s parliament session, Prime Minister Li Keqiang discussed civilian livelihood, reporting that 600 million citizens were still only making a monthly income of around 1,000 yuan ($140). This shows that there is still a large number of people in China who are unable to fill their basic needs without an increase in their income. As a result, China has begun to recognize the importance of developing the street vendor economy, which can help decrease unemployment and drive up higher consumption.

Street Vending in Public Policy

With the target of eliminating poverty by 2020, the approval of street vendors has become a necessary choice. Street stalls were previously thought to clash with the modern urban landscape of cities. However, the Chinese government had a change in attitude following the successful street stall experiment in Chengdu, China. The government found that reintroducing street stalls in Chengdu created 100,000 new jobs and largely increased people’s interest in entrepreneurship. Thus, the policy was implemented across the country.

Additionally, many large companies from a variety of sectors are stepping in and showing their support for street vending. Alibaba is one of the largest online shopping platforms in China. It pledged to sell merchandise to stall owners at a reduced price. Additionally, Dongfeng Motor Group and Jiangling Motors Corp (JMC) said its “vans can be modified to suit vegetable sellers or BBQ street food vendors.”

Effect on Unemployment

In June, unemployment was at  5.7%, which was a decrease of two points from the previous month. At that time, China had also created 5.64 million jobs. The increased use of street vendors is contributing to the stimulation of China’s economy and encouraging cash fl0w. Street vendors are aiding in the absorption of the labor force. They are helping those who have been unable to find work and who have not yet received aid due to the pandemic.

There is still some debate in areas like Bejing as to whether street vendors will help the economy. However, Chengdu created 100,00 jobs in May by opening “tens of thousands of street stalls.” Other local governments are following suit. Lanzhou announced its plans to open 11,000 more vendors with the possibility of providing an additional 300,000 jobs. By July, the unemployment rate had not lowered, but it also did not go up.

In a time when many countries are facing a spike in unemployment, China’s use of innovative solutions sets an encouraging example. By using street vendors as a way to stimulate the economy, China is supporting small businesses and improving consumer confidence. 

Dihan Chen
Photo: Flickr

EU Youth UnemploymentIn 2019, the EU youth unemployment rate was at its lowest point in the last 10 years. More than 3.3 million young people (aged 15-24 years) were unemployed that same year, but compared with the previous year (2018), the situation looks much better. In 2018, more than 5.5 million young people were neither employed nor enrolled at an educational institution or training program. This vital change is achieved thanks to multiple EU policies and tools. It provides proper training and education, prepares youngsters for the labor market and gives them the chance to be competitive and successful. However, it is important to note that youth unemployment is 10 points higher than the average and there is a lot more space for improvement.

EU Youth Unemployment: Social and Economic Impacts

Eurostat reports show that EU youth unemployment rates are much higher than unemployment rates for all other age groups. In January 2019, jobless men and women above the age of 25 are 5.7%. As for the same period, rates among youths are 14% which is almost three times higher.

The unemployment rate is an essential indicator of both social and economic dimensions of youth poverty. Dangerously high unemployment rates show that young people can’t find their place in the labor market. Thus, they are not an active part of society. Jobless youngsters most often live with their parents, which destroys their learning motivation and civic engagement. Additionally, the lack of financial independence prevents them from going out and traveling. The combination of these factors kills their drive to find a job that creates even deeper despair on the emotional level.

A vicious circle starts forming around these young people who lose interest in social causes, politics and innovations. Once they lose their drive, long term unemployment is just the next step, according to studies in the EU. Unfortunately, many teenagers and twenty-something college graduates do not find jobs right after leaving the education system.

EU Institutions and National Governments Tackle Youth Unemployment

Young people’s labor market performance has indeed improved significantly over the past few years. According to the European Commission, there are 2.3 million fewer young unemployed now than five years ago. Around 1.8 million young people started apprenticeships, education or other kinds of training. Youth unemployment had decreased from 24% in 2013 to 14% in 2019.

The significant decrease of EU youth unemployment is possible through a combination of EU and national governments’ efforts to fight this phenomenon with various measures. This includes the promotion of a life-cycle approach to work, encouraging lifelong learning, improving support to those seeking a job and free training programs.

The latest research shows that apprenticeship and traineeship programs help prepare young people for the labor market and build relevant skills. Coordinating social policies like education or youth engagement and economic policies like employment rates is hard but a balanced governmental approach. With support from the local business in different countries, the number of youth employment increases in recent years. New partnerships have been set up with social partners, youth services and youth organizations as well.

These efforts should work to tackle EU youth unemployment by helping students and young professionals build attractive resumes for businesses operating on the global labor market. Nowadays, finding a job is more challenging than ever. Global competition requires all kinds of skill-sets from newcomers. In addition, these programs are designed to reinforce youngsters’ positions at this entry point. Besides, NGO initiatives and partner organizations create platforms for online education. The platforms are for people to take specialized courses without the need to enroll in an official university program. It’s easier, faster and very practical. Usually, such NGOs cannot provide certificates or diplomas, but the good news is businesses don’t need one. If the young person shows skills and a can-do attitude, he/she is hired.

The Changing of European Higher Education

The European conservative format of higher education is also changing slowly. More universities invite businesspeople to the campuses. This way the students can get the chance to meet entrepreneurs with hands-on experience and learn in a more informal environment. This type of education is most popular in the U.S., while formal education in Europe is still lagging in this regard. But times are changing, dynamics of life, work and study are different, and all involved parties are adjusting. There is no doubt that universities should work hand in hand with businesses to ensure a prospective future for young people.

Olga Uzunova

Photo: Flickr