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HomeStudy on the Youth Guarantee in light of changes in the world of work . Part 2, Emerging challenges related to young people’s transition into the labour market
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The Youth Guarantee was designed as a result of the high youth unemployment rates in many European labour countries after the economic recession. With the rate of youth unemployment generally declining since then, different challenges have evolved for young people in the labour market. Member States have experienced different paths in their economic recoveries, and the composition of groups of disadvantaged young people differs by country and by region, resulting in a combination of both Europe-wide challenges and specifically national challenges. In addition, it is expected that future techno-logical developments will have significant impacts on European labour markets, particularly impacting on youth labour markets. Since the end of the economic crisis, several key developments are worth noting. Firstly, as the overall economic outlook has improved, youth unemployment remains concentrated in specific Member States. In these Member States, jobless youth are also a key determinant in overall unemployment, a fact that is also reflected in a diverging trend in the youth unemployment gap between Member States. Secondly, at the aggregate level, trends are visible for specific groups of youth: among young men, for instance, inactivity rates remain higher now (2017) than they were before the crisis (2007) – for women, current inactivity rates are lower now than before the crisis, but they are overall at a higher level than for males. Thirdly, highly educated young people were affected more strongly by the economic shock, and their labour market position has recovered more slowly since then. At the same time, despite a less pronounced dynamic, NEET rates for low-educated young people remain higher in absolute terms. These general developments add to specific group heterogeneity at the Member State level: in particular, for instance, their capacity to reintegrate long-term unemployed youth varies markedly be-tween countries. In a parallel development, technological change through automation and digitalisation has advanced, and it is expected to re-shape the future world of work. Some predictions of the extent to which various jobs are likely to be automated represent an upper band of workers’ redundancy and they may also underestimate the potential societal benefits of technological advances. In the meanwhile, certain accompanying labour market developments are becoming visible: one development, for instance, is the increasing prevalence of non-standard forms of work, and a higher degree of labour market volatility which is the result of less stable employment situations and more frequent job-to-job transitions. Against this background, the report has discussed the implications of these challenges for youth employment and school-to-work (STW) transitions. First, it has provided a comprehensive overview of the current and future challenges for youth in the labour market and how these challenges will affect different groups of young people. Second, the report has reviewed the potential role of public policies and the current paradigms in view of these changes and discussed key policy levers to address these challenges. The first part makes clear that ongoing and anticipated technological developments are rightly expected to change the kinds of work experience that young people will have in the future as well as their actual jobs, with potentially important implications concerning the (in-)equality of opportunities and outcomes. The second part shows that these changes require responses in public policy in order to adapt economies to the upcoming challenges.
- Published:
- Themes: Employment policy , Labour market — Free movement of workers
- Subject: automation , education , employment service , EU employment policy , EU initiative , EU Member State , fight against unemployment , impact of information technology , job access , labour market , non-standard employment , professional qualifications , young worker , youth employment , youth policy , youth unemployment
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| ISSN | ISBN 978-92-79-99984-0 | DOI 10.2767/508325 | Catalogue number KE-01-19-129-EN-N |
- Released on EU publications website:
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