In today's economy unemployment rates for youth are much higher than those for adults. This indicates several factors, including the lack of experience of young people entering the labor market for the first time, and the lack of strong work-related skills that are often important for finding a job.
The level of youth unemployment varies across countries. But in low-income countries, many workers have to accept any job just to make a living. In America many educated people that have just graduated from college have resorted to taking jobs that don't have any employment benefits or social protection. Making it important to consider the quality of jobs that are being created along with number.
While the youth unemployment rates are highest in the Middle East and North Africa, other areas, such as sub-Saharan Africa and south Asia, are plagued by a high number of low quality jobs for the young and old.
The economic and social costs of unemployment and low-quality jobs for young people are damaging. Young people who have been out of work for a long period of time along with young people who are underemployed can slow future growth for the global economy.
Much has been said about the social costs of high youth unemployment. Unemployment creates social exclusion that gives rise to crime and makes societies more vulnerable to civil disorder and political upheaval.
In spite of all this there is no quick fix to solve youth employment, but making education more accessible to those who do not have the resources to attend college by using MOOC's as a tool to educate young people. This also helps give the youth the chance to obtain basic skills which can help them in the job market.
The U.N has also called for more to be done to increase access to finance for entrepreneurs and small businesses to help create jobs.
Because businesses have to look at the bigger picture by realizing that young people can bring new energy and ideas to their company and the economy as a whole.
Governments around the world have proposed solutions that will create jobs. The E.U for example, has set up a youth guarantee program that will help young people find jobs. One area of focus is on the long term unemployed who need jobs the most.
Poland for example has a voluntary labour corps that is a national institution specialized in supporting young people in developing skills, entering the labor market and social inclusion in a broad sense. Every year various services of VLC are used by more than one million young people. With projects of the Voluntary Labour Corps under the Youth Guarantee will be addressed to help the long term unemployed young people who are not registered at the labour offices. The support is provided, consisting in the opportunity to acquire the profession, changing the profession or increasing professional qualifications, acquiring work experience and taking a job leading up to becoming an independent young person.
The VLC is a program that could potenially benefit other countries which suffer from the problem of unemployment among young people.
Other policies include enabling firm-level agreements that offer higher wages that reflect market conditions.
While unemployment is a serious problem, the solution is not hard to understand. A plan to reduce unemployment has to combine demand and supply side policies, at both the local and national levels.