|Scooped by The Gp Tutor|
"When you look at the global scale of youth unemployment and the global size of the youth population, clearly it can work to undermine global growth," said Nicole Goldin, director of the Youth Prosperity and Security Initiative at the Center for Strategic and International Studies. "On the social side when you have large cohorts of young people that don't feel they have a stake in the game, and in particular where there are not the social safety nets to help them feel they have a future, you have a real sense of no alternative and that contributes to unrest and criminality," she added. In the U.S., the crisis is costing American taxpayers $25 billion annually in the form of lost tax revenue and government benefit payouts, according to a recent report by Young Invincibles, an advocacy organization for young people. "We have a generation that is disproportionately out of work and is very much struggling right now, and it's going to take a significant toll on those individuals but it's also going to be a tremendous cost to everyone," said Rory O'Sullivan, a policy analyst at Young Invincibles and one of the authors of the report. A variety of factors have contributed to high levels of jobless youth in the U.S., O'Sullivan said. Like most economic downturns, the Great Recession hit the youngest Americans the hardest. It also followed several decades that saw young people getting pushed out of the labor force as jobs increasingly required more skills. Now, O'Sullivan said, jobless youth are in a Catch-22: Employers want applicants with experience, but young job seekers can't get in the door to get it. The situation is even more dire in parts of Europe and the Middle East. In an analysis compiled for The WorldPost, the International Labor Organization compared youth employment-to-population ratios of advanced and emerging G-20 countries. It found that if France and Italy boosted their numbers to match the ratio in Australia, they could increase GDP growth by 1.4 and 1.2 percent per year respectively. Saudi Arabia could increase its annual GDP by 2.3 percent, and the U.S. by 0.6 percent per year if it reached Australia's levels of employment.
The Gp Tutor's insight:
How will generation jobless cope with rising unemployment around the world? Will this bring about more entrepreneurs?