The International Labour Organization (ILO) has warned that a failure to act on the youth jobs crisis threatens to prolong the crisis and delay the economic recovery in the eurozone. In a study that examines the latest labour market reforms and employment trends, ILO has warned that without a youth guarantee and other shifts in policy, the number of jobless people across the eurozone could reach to 22 million in four years.
As reported in the Financial Times and the BBC, the UN agency recommends “promoting investment and supporting jobseekers, especially for young workers. A ‘youth guarantee’, at a cost estimated at less than 0.5% of the Eurozone’s Government spending could be quickly implemented. To fund this, there is a case for refocusing European Structural Funds and mobilising the European Investment Bank”.
The study also shows the fatal consequences of the harsh austerity measures imposed in the last few years, especially for young people and the labour market. According to ILO, ‘guaranteeing’ unemployed young people new jobs, training or education would “bring the Eurozone out of the austerity trap and pave the way for a sustainable recovery with social cohesion”.
The report “Eurozone job crisis: trends and policy responses” can be found here.