'An Economic Time Bomb': The World's unemployed youth by Pavlina Kulish.

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Presentation transcript:

'An Economic Time Bomb': The World's unemployed youth by Pavlina Kulish

THE WORLD'S UNEMPLOYED YOUTH 1. Youth population and Unemployment 2. The youth unemployment crisis 3. Youth unemployment in Ukraine 4. The ways of reducing youth unemployment

Trends in the youth population Regional distribution of the youth population, 2012 Source: United Nations World Population Prospects Youth comprises the age-group between 15 and 24 inclusive

What is UNEMPLOYMENT Unemployment is an economic condition marked by the fact that individuals actively seeking jobs remain unhired The unemployment rate is the number of unemployed persons divided by the number of people in the labor force Main types of unemployment: Frictional, Structural and Cyclical

What is UNEMPLOYMENT Frictional Unemployment (also called search unemployment) is an unemployment that occurs when workers lose their current job and are in the process of finding another one Structural Unemployment is an unemployment that comes from there being an absence of demand for the workers that are available Cyclical Unemployment (also known as deficient-demand unemployment) is an unemployment that occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work

Characteristics and challenges of THE YOUTH EMPLOYMENT CRISIS CHALLENGES IN YOUTH TRANSITIONS TO DECENT WORK YOUTH ARE INCREASINGLY DISCOURAGED the number of ‘youth NEETs’ (not in Education, Employment or Training) is growing WIDENING DISADVANTAGES AMONG YOUNG PEOPLE AND INCREASING POLARIZATION

Characteristics and challenges of THE YOUTH EMPLOYMENT CRISIS SKYROCKETING YOUTH UNEMPLOYMENT Pre crisis: 100,000 VS Post crisis: over 4 million LOWER QUALITY JOBS, LOW PAY AND INFORMALITY YOUTH UNEMPLOYMENT RATES ARE HIGHER THAN ADULT UNEMPLOYMENT RATES

EU youth unemployment rates Source: Eurostat, 2012

EU youth unemployment rates Source: Eurostat, 2012

Source: Youth Unemployment in Ukraine

THE WAYS TO REDUCE THE UNEMPLOYMENT Promoting economic diversification Reducing economic instability Loosening constraints on MSMEs and private sector growth Focusing on demand-side interventions Youth-friendly fiscal policy Education and training: “A lifelong journey”

Thank you for your attention