Youth Unemployment – Causes and Consequences
By Stefan Humpl, 3s Unternehmensberatung GmbH
In all employment systems in the world the integration of young people into thelabour market is an important task. Statistics (e.g. on all OECD countries) show ahigher rate of youth unemployment compared to the overall unemployment rate.Even minor economic crises make the youth unemployment rates grow faster, inthe light of the actual economic depression youth unemployment is rapidlygrowing all over the world.Even when specific factors to tackle youth unemployment are varying highly indifferent economic and social circumstances, one can name the main problems.On the one hand we see different views from expectations of young people fromthe labour market and its reality. These different views come from gender rolemodels (e.g. in Austria approximately 50% of young women want to work in only5 occupations like hairdresser or secretary). But there are also differentexpectations, like many prefer to earn money at the time instead of thinking of long term career development. Most European countries face a lack of personnelin technology and natural sciences, but have a lot of students in human andsocial sciences.New forms of labour promise individual and flexible working conditions. But mostof them lack social safeguarding for young people on the labour market.Individualisation and flexibilisation is often followed by “precarisation”, whichmeans a high economical risk through only day-to-day jobs.Classical factors for youth unemployment are often mentioned in employmentresearch, like low education and high drop out rates in education. But also socialintegration problems (like crime or drug abuse) cause unemployment. In manycountries we see integrational problems of minorities or persons with migrationbackground. And also early motherhood is a factor for employment problems inmany societies. Most of these factors do not come alone, so normally we face thecombination of several of the mentioned factors for youth unemployment.If we try to subsume globally the problems that cause youth unemployment, wecan define them at the interfaces and transitions between school education andthe labour market, school education and other forms of education, socialexclused groups and (school) education as well as the labour market. The consequences of youth unemployment resemble the causes – so we have tospeak of a vicious circle. Youth unemployment causes low self confidence andlow self empowerment. Young people unemployed are at the risk to lose theirplace in society and turn to seclusion, drug abuse and sometimes evencriminality. Other consequences are the loss of perspectives through having nochance for a straight forward career development and the loss of qualificationsthrough not using them on the labour market. To tackle this doom loop it is necessary to
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