Youth Empowerment in the EU workspace

High youth unemployment rates is a critical issue for EU member states and fostering the active participation of young people in the labour market is a priority for the European agenda.

Young people across the EU are experiencing a rapidly changing labour market as globalisation, technological development, and international mobility can offer both opportunities, but also difficulties, for them.

For perspective, during the aftermath of the 2008 global financial crisis, youth unemployment in the EU increased from 16.0% to a high of 24.4% in 2013. The figures had just started returning to their original levels when the COVID-19 pandemic began.

As of October 2022, Spain experiences the highest youth unemployment rate in Europe at 32.3%, followed closely by Greece, which as of this month has a youth unemployment rate of 27.3%. These are both significantly higher than the EU’s average youth employment rate which across all 27 member states is 15.1%

To help combat this situation, the International Labor Organisation adopted a resolution entitled “The youth employment crisis: A call for action” at their 101 International Labor Conference on 14 June 2012 . This addressed the urgent need for targeted and renewed action to tackle the youth employment crisis. It called for both partners and governments to implement fiscally sustainable and youth-targeted measures, such as countercyclical policies, demand-side interventions, public employment programmes, employment guarantee schemes, labour-intensive infrastructure programmes, wage and training subsidies, and other youth-specific employment assistance. It also demands the promotion of macroeconomic policies and fiscal incentives that support employment and stronger aggregate demand, improvement of financial access, and the increase of productive investment while considering the economic situation and development of each country.

In addition, the EU member states responded to the youth employment crisis by introducing the Youth Guarantee which promotes high-quality employment opportunities, continued education, as well as the importance of apprenticeships and traineeships for all youth under age 25. The recommendation is based on a EU Commission’s proposal which is part of the Youth Employment Support Package. The package is based on four different thematic areas that, together, aim to provide more jobs for the next generation.

The Youth Guarantee is financially supported by significant EU sponsors including the NextGenerationEU programme and the EU’s long-term budget.

The EU also provides policy support and opportunities, allowing the EU Member States to learn from each other by sharing best practices in order to strengthen their infrastructure and improve implementation of the Youth Guarantee. The EU also monitors progress across Member States and should help establish accountability for proper implementation, and enforcement of the policies. Additional financial support is also provided by the Youth Employment Initiative (YEI) and the European Social Fund (ESF).

The COVID-19 pandemic has exacerbated the already difficult start many young people experience when trying to enter the labour market. According to Eurostat, employment among 15-29 year-olds in the European Union fell by 2.8% due to the pandemic. The largest decreases were recorded in Portugal, Bulgaria, Latvia, Czechia, and Poland. The Eurostat data also demonstrated that there was some overall recovery during July to September 2021, but that the majority of EU Member States (16 of 27) have not fully recovered their pre-COVID rates.

With the support of NextGenerationEU and the future EU budget, the EU Commission has already proposed significant EU financial assistance for youth employment initiatives especially for projects that also align with other EU objectives including promoting green and digital transitions in employment. It is important for the Member States to build on the EU’s momentum and prioritise these investments. According to the EU Commission, at least €22 billion should be spent on youth employment support.

They urge Member States to take advantage of the financial assistance available for youth employment projects. For example, the European Social Fund Plus will be a key EU financial resource to strengthen the implementation of the youth employment support measures. As part of the Recovery Plan for Europe, the Recovery and Resilience Facility and REACT-EU will provide additional financial support for youth employment.

As ILO suggests, in order to properly tackle youth unemployment, governments must commit to action. Government departments should work together and avoid “one-size-fits-all” policies. Indicators like mental health should be monitored closely and specific interventions may be needed to help particular groups like young women, who often face additional challenges in the workplace. Additionally, investing in skills, education, high-quality jobs, and mental health will further help young people rejuvenate their educational and career prospects, empowering them to face the future with more confidence.

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