Youth Unemployment in Europe: Policy Responses John Ditch, Network Meeting Cracow 26 – 27 October 2011

Youth Unemployment in Europe: Policy Responses Overview Key trends and data The European Framework The Key Challenges & Problems Responses and examples: Active Labour Market Policies Social Security Benefits Tax Systems & Labour Market Legislation Entrepreneurship & Mobility Conclusions

Youth Unemployment in Europe: Policy Responses

Youth Unemployment in Europe: Policy Responses Key problems and challenges Jobless v. Unemployed Transitions from education to employment Skills mismatch Lack of work experience Precarious employment & internships Special groups: disabled, early leavers, ethnic minorities Gender dimension

Youth Unemployment in Europe: Policy Responses The European Context: Europe 2020 Youth on the Move (Sept 2010) European Council June 2011 European Foundation for the Improvement of Living & Working Conditions European Employment Observatory European Industrial Relations Observatory

Youth Unemployment in Europe: Policy Responses Active Labour Market Policies Job Search Assistance Schemes (but shortage of jobs and perverse impacts) Youth Guarantee Conditionality rules History of poor performance

Youth Unemployment in Europe: Policy Responses Social Security Benefits: Young people: the same or different? Special rules Conditionality and education Moral hazard and perverse effects

Youth Unemployment in Europe: Policy Responses Tax Systems & Labour Market Legislation Phenomena of dual labour markets Some evidence that flexible labour markets first to be impacted by recession but first to recover. Adjustments to National Minimum Wage for young people Variation in fixed-term contracts Hiring subsidies and reductions in non-cost wage costs of labour

Youth Unemployment in Europe: Policy Responses Entrepreneurship and Mobility: Self-employment as opportunity: business planning, support and guidance Erasmus for youth entrepreneurs European Credit Transfer and Accreditation European qualifications framework for LLL

Youth Unemployment in Europe: Policy Responses Conclusions: Importance of governments rather than other social actors as key driving force Importance of ALMPs in most countries Importance of continued investment in education, training and apprenticeships (despite austerity cutbacks) Concern about erosion of rights of young people and rise in unpaid internships

Youth Unemployment in Europe: Policy Responses Conclusions (continued): An ‘inarticulate’ debate between interests of young and older workers Significance and long-term impact of unemployment and precarious employment.