2.2.1 Focus on Youth
The labour market situation of young people has become an increasingly urgent social matter in the EU (30) and the integration of young people into the labour market continues to be a major policy issue for the EU and individual Member States. Despite a shrinking and increasingly better-educated youth population, young people in many Member States still face (29) ‘Young people’ refers to the age group 15-24. However, the labour market situation of the older young age group (25-29) is increasingly gaining importance. More young people aged between 20 and 24 stay longer in education and training both due to the recent economic downturn as well as a result of EU educational targets. Therefore the transition process from school to work is postponed to a later age . See a more detailed presentation of youth employment across various age groups in the European Commission (2012b). (30) State of the Union address by President Barroso to the European Parliament in September 2011 (see also http://ec.europa. eu/commission_2010-2014/president/ state-union-2011/index_en.htm). considerable problems in making the transition from education into employment. And many of those who have gained a foothold in the labour market often hold unstable jobs with unfavourable conditions and career prospects.
The young need special attention and support for various reasons. Firstly, their situation is more challenging in comparison to adults and has been deteriorating over time. They face high unemployment rates and they are increasingly affected by long-term unemployment and labour market segmentation. The second reason is the negative long-term implications of unemployment at a young age, such as the increased probability of future unemployment, the reduced level of future earnings and the higher likelihood of precarious employment. The negative impact goes beyond the labour market and may also adversely influence poverty, young people’s health status, life expectancy and youngsters’ beliefs as well as their civic and political participation (see Bell and Blanchflower 2010, Scarpetta et al. 2010, Simms 2011, YOUNEX project (31), European Commission 2011a, Eurofound 2011a and Eurofound 2012a). This has a negative impact not only on young people’s financial and social situation or training but also for the economy and social cohesion at large.
Finaly, the young are more exposed to systematic labour market risk (Chung et al. 2012). They are confronted with changed labour markets and more demanding employers than previous generations – there is greater pressure on them to be job-ready and to perform from day one (Sissons and Jones 2012).
While the young share several common characteristics, they are a heterogeneous group and this requires tailor made policies that go beyond a well-functioning labour market. The unemployed can be skilled or unskilled. The young might be inactive because they are in education, but also because they look after children or elderly relatives or because they are disabled or sick. Policies need to acknowledge that and include, besides general growth stimulating policies, specific measures to reduce income insecurity and poverty among the young as well as preventive measures starting in childhood to minimize the risk of the young becoming a NEET (neither employed, nor in education or training).