For over 3 years we have pointed out that the surging youth unemployment was Europe’s (if not the world’s) scariest chart, because the last thing Europe needs is a discontented, disenfranchised, and devoid of hope youth roving the streets with nothing to do, easily susceptible to extremist and xenophobic tendencies: after all, it must be “someone’s” fault that there are no job opportunities for anyone. Well, as Bloomberg reports, The World Bank has an unsettling message for young people around the globe: unless we create 5 million jobs a month, the situation is going to get worse.
As The World Bank notes, Unemployment in any form is a drag on an economy and society.
It undercuts productivity, spending, and investment, stunting national growth. It contributes to inequality and spurs social tension. Joblessness and inactivity and the failure to tap into the economic aspirations and resources of young people carry an even higher price.
As prospects dwindle, many face social exclusion, or see their emotional, mental, or physical health deteriorate.
Young people account for roughly 40 percent of the world’s unemployed and are up to four times more likely to be unemployed than adults.
When young people are not fully participating in the labor force or are NEETs, governments forgo tax revenue and incur the cost of social safety nets, unemployment benefits and insurances, and lost roductivity. Businesses risk losing a generation of consumers. Social costs are ever mounting as well. The Arab Spring and subsequent youth-led uprisings in many countries, along with the rise of economic insurgency and youth extremism,demand that we explore the links between economic participation, inequality, and community security, crime, and national fragility through a lens focused on youth. What we see is a generation in economic crisis.
Over the next decade, a billion more young people will enter the job market—and only 40 percent are expected to be able to enter jobs that currently exist. The global economy will need to create 600 million jobs over the next 10 years: that’s 5 million jobs each month simply to keep employment rates constant.
In other words, even with that ‘growth’ we are going nowhere!!
The youngest workers have been hit hardest by the financial crisis and the global recession of the last decade because they often held the temporary jobs, which offer less protection. The youth unemployment rate is projected to be 13.1 percent in 2015, compared with 4.5 percent for adults, according to the ILO.
Global employers are looking not only for technical and academic skills, but also such qualities as being open, responsible or organized, …Young workers are often either overqualified or underqualified for their jobs, it said.
“In emerging economies that are progressively more service-based, employers find a workforce population that lacks necessary skills,” the report said. “Elsewhere, the problem is that many of the unemployed are highly educated but the market demands different competencies or more technical or vocational skills.”
At stake is the well-being of the entire global economy. Without an income, millions of young people slump into poverty. By delaying their entry into the workforce or accepting low-paying jobs, many limit their lifetime earning potential. When young people don’t work, governments don’t get the tax revenue and businesses fail to gain customers.
“Social costs are ever mounting as well,” the report said, citing youth-led uprisings in many Arab countries and the rise of economic insurgency and youth extremism. “What we see is a generation in economic crisis.”
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Full World Bank Report below…