Youth Unemployment

in Europe
Maria Arsita
Diny Larasati
Anis Serliya
Nahla
Avi Arshad

(365432)
(359288)
(361176)
(361167)
(361178)

Youth
The age-group between fifteen and twenty-

four inclusive. It could be different in other

country because cultural, institutional dan
political factor. (ILO)

Unemployment
The unemployed are defined as those people

who have not worked more than one hour

during the short reference period but who are
available for and actively seeking work. (ILO)

Youth Unemployment
Youth unemployment refers to the share of

the labor force ages 15-24 without work but

available for and seeking employment.

Youth Unemployment : this rate tell us how easy it

is for young people to find work, and is therefore

useful in its own right. And the different between
people who leave their jobs and transitioning into
employment as primary activity.
Long-term Unemployment
NEET-hood : Record the level of youth
disengagement from both labor market and skill
system.
Transition process between leaving education and
finding secure job
How youth unemployments effect on gender,
nationality and education.

Not in Employment, Education or

Training (NEETs)

Temporary employment

Part time employment

Transition between leaving education and

finding secure job

Youth Unemployment Based on

Qualification

Causes of Youth Unemployment in

Europe
1. Aggregate Demand
A fall in aggregate demand leads to a fall in

demand for labor.

Young people are more likely to voluntarily
quit their jobs than older workers.
They tend to have fewer skills and lower
wages, and are less likely to need a job to
support a family
Opportunity cost of hiring young workers is
bigger than hiring adults.

1. Aggregate Demand
Proxy: Labor Force Participation
Rate of participation influence the level of

youth unemployment
Many young people are studying full-time and
are therefore neither working nor looking for a
job
The youth also faced the change in structural
economic

Labor Force Participation Rate in EU

Labor Force Participation Rate in EU

High Education
Participation

2. Wages
An increase in youth minimum wage will increase

the unemployment rate

Employers are discouraged from hiring them
Economic theory predicts that if a workers
productivity is below the average, he will not hired
or lose his job.
Having less experience and being less productive,
youths earn on average wages and more likely to
be negatively affected by minimum wages
legislation than adults

3. Structural Economic
Change
If youth specialize in jobs and industries that

are in long term decline, itll be difficult for

them to find work overtime.
Types of industries and occupations open to
young people are now very different than they
were in the past.

Structural Economic Change

Further analysis
Case study in Europe
Youth unemployment in

Indonesia

Summer Employment
Rate

Journal Source
Thompson, Spencer. 2013. States of

Uncertainty Youth Unemployment in Europe.

Institute for Public Policy Research. October 7 th
2015.
OHiggins, Niall. 1997. The Challenge of
Youth Unemployment. Geneva: International
Labour Office. October 7th 2015.

Sources
Labour market and Labour force survey (LFS) statistics

http://ec.europa.eu/eurostat/statistics-explained/index.php
/Labour_market_and_Labour_force_survey_(LFS)_statistics
Tertiary education statistics
http://ec.europa.eu/eurostat/statisticsexplained/index.php/Tertiary_education_statistics
Unemployment statistics
http://ec.europa.eu/eurostat/statistics-explained/index.php
/Unemployment_statistics

Thank you for your

attention