The global financial crisis of 2007-2008 and the global recession in 2008-2009 has led to a dramatic increase in the rate of youth unemployment, all over the world. Youth is the age bracket of 15 years to 24 years of age. In the US, the unemployment rate rose to 20% during the year 2010 while the UK saw nearly a million of their youths jobless. During that same period, the number of young people with no jobs went from 170 million to more than 210 million. In many of the European countries, the unemployment of youth went up to 10% in 2011 from 7% in 2008 while the global unemployment rate went from 11.6% to 12.7% between 2007 and 2011. Statistical trends based on data from 2005 to 2010 show that in many of the developed nations, the rate of joblessness has doubled. Since the end of 2007, more than 2.1 million men and 1 million women have not been able to secure any jobs in countries such as the USA, Australia, Canada and European countries, all of which contribute towards 60% of the world’s economy.

The main reason for such a trend is thought to be the lack of skill and work experience among young men and women, making them least favorable choice for any kind of employment. Another possible reason could be mismatch between the knowledge obtained through formal education and the skill required in the market. Empirical studies suggest that the macroeconomic cyclical conditions could be one of the causes of such unemployment. Some studies suggest that the lack of demand is the reason for unemployment of the youth in Europe. Demographic conditions, such as population density and percentage of young and old people, have also been implicated as a reason for unemployment. Institutional variables such as unemployment benefits, legislation protecting employment, labor taxes, part-time contracts, labor market policies and unionization too influence the employment of young people across the world.

Contrary to the popular trend, Germany has shown reduction in their unemployment status mainly due to their dual apprenticeship system that facilitates easy transition from educated unskilled students to educated skilled laborers. Denmark’s active labor policy to prioritize formal schooling and Netherlands’ part-time flexi employment system are also some of the successful systems to resolve the unemployment of young people.

S. Li