The plight of youth unemployment in developed economies is so severe it has
prompted the OECD to call for more government intervention, possibly
including paying companies to hire young people.
|Scooped by GIBS Information Centre / GIBSIC|
UNEMPLOYMENT - "There are already about 48 million people out of work across the OECD's members. It forecast that the unemployment rate would hit 8.0% this year before easing only slightly to 7.8% next year. However, the outlook diverged widely with the unemployment rate set to keep rising in Greece to 28.2% next year and Spain seeing its jobless rate rise to 27.8% in 2014, the highest in the OECD.
The report says that unemployment is likely to rise in most eurozone countries, with Germany, where jobs figures are expected to see a slight increase, a notable exception. With many countries still struggling to recover from the 2008-2009 financial and ensuing economic crisis, the OECD said there were more and more long-term unemployed people who increasingly risked losing their rights to jobless benefits. Because the youth, defined as 15 to 25 year-olds, often have little or even no benefits to start with, the situation has become particularly dire for them.
Youth unemployment rates in Greece and Spain are near 60% and economists increasingly see the problem as a top risk for the future of Europe along with the weakness of its banks. EU leaders, who have made the fight against youth unemployment a priority, agreed last month to set aside around €8 billion for jobs and training, even as they admitted that the labour market would only improve substantially once the crisis-hit region returns to growth."