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