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Youth unemployment

Unemployed youth—typically defined as those aged 16 to 25—are an at-risk population in many countries. In most OECD countries, the average youth unemployment rate is significantly higher than the overall unemployment rate, and rates increased in many industrialized countries following the global recession. Current cohorts of young adults entered adulthood during an international labor and housing market crisis of a severity not experienced since the Great Depression, raising concerns that they represent a “scarred generation” that will suffer a permanent decline in their financial well-being. Governments need to address youth’s crucial transition from school to work. Active labor market programs including job-search assistance, counseling, training, and placement services can help, if they are comprehensive—but they are expensive. Vocational training—in particular in a dual form combining vocational schooling and structured learning on-the-job, like in an apprenticeship—is also considered an important solution.

articles

  • Covid-19 and the youth-to-adult unemployment gap

    Is the youth labor market bearing the brunt of the pandemic?

    Francesco Pastore, January 2023
    The Covid-19 pandemic has produced unprecedented negative effects on the global economy, affecting both the demand and supply side. Its consequences in terms of job losses have been important in many European countries. A large number of firms have been forced to dismiss at least part of their workforce or to close down all together. Considering that young people are usually penalized more than their adult counterparts during economic crises due to the so-called “last-in-first-out” principle, it is worthwhile to evaluate if the youth will also end up paying the highest price during this pandemic-induced recession.
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  • The effect of early retirement schemes on youth employment Updated

    Keeping older workers in the workforce longer not only doesn’t harm the employment of younger workers, but might actually help both

    René BöheimThomas Nice, October 2019
    The fiscal sustainability of state pensions is a central concern of policymakers in nearly every advanced economy. Policymakers have attempted to ensure the sustainability of these programs in recent decades by raising retirement ages. However, there are concerns that keeping older workers in the workforce for longer might have negative consequences for younger workers. Since youth unemployment is a pressing problem throughout advanced and developing countries, it is important to consider the impact of these policies on the employment prospects of the young.
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  • Men without work: A global well-being and ill-being comparison

    The number of prime-age males outside the labor force is increasing worldwide, with worrying results

    Carol GrahamSergio Pinto, October 2019
    The global economy is full of progress paradoxes. Improvements in technology, reducing poverty, and increasing life expectancy coexist with persistent poverty in the poorest countries and increasing inequality and unhappiness in many wealthy ones. A key driver of the latter is the decline in the status and wages of low-skilled labor, with an increasing percentage of prime-aged men (and to a lesser extent women) simply dropping out of the labor force. The trend is starkest in the US, though frustration in this same cohort is also prevalent in Europe, and it is reflected in voting patterns in both contexts.
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  • University study abroad and graduates’ employability Updated

    There is a positive association between study abroad and graduates’ job prospects, though it is unclear if the link is causal

    Giorgio Di Pietro, May 2019
    In recent decades, the number of university students worldwide who have received some part of their education abroad has been rising rapidly. Despite the popularity of international student exchange programs, however, debate continues over what students actually gain from this experience. A major advantage claimed for study abroad programs is that they can enhance employability by providing graduates with the skills and experience employers look for. These programs are also expected to increase the probability that graduates will work abroad, and so may especially benefit students willing to pursue an international career. However, most of the evidence is qualitative and based on small samples.
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  • Measuring employment and unemployment

    Should statistical criteria for measuring employment and unemployment be re-examined?

    Andrea BrandoliniEliana Viviano, August 2018
    Measuring employment and unemployment is essential for economic policy. Internationally agreed measures (e.g. headcount employment and unemployment rates based on standard definitions) enhance comparability across time and space, but changes in real labor markets and policy agendas challenge these traditional conventions. Boundaries between different labor market states are blurred, complicating identification. Individual experiences in each state may vary considerably, highlighting the importance of how each employed or unemployed person is weighted in statistical indices.
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  • Why is youth unemployment so high and different across countries?

    Young people experience worse labor market outcomes than adults worldwide but the difference varies greatly internationally

    Francesco Pastore, January 2018
    In Germany, young people are no worse off than adults in the labor market, while in southern and eastern European countries, they fare three to four times worse. In Anglo-Saxon countries, both youth and adults fare better than elsewhere, but their unemployment rates fluctuate more over the business cycle. The arrangements developed in each country to help young people gain work experience explain the striking differences in their outcomes. A better understanding of what drives these differences in labor market performance of young workers is essential for policies to be effective.
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