Raising youth unemployment as one of the consequence of the Covid-19 pandemic

Abstract

For studying the excess of youth unemployment in comparison with other age groups in Europe and selected world regions, the authors hypothesized the high efficiency of government employment policy, taking into account the possible consequences of displacing other age groups. The aim of the study is to formulate proposals for reducing youth unemployment in Europe and selected world regions in accordance with the identified specific causes of this phenomenon. The main objectives of the study are: - consideration of macroeconomic indicators of Europe and selected world regions in 2015 to 2020 and the peculiarities of their interconnection; - identification of the most specific causes of youth unemployment excess in comparison with other age groups in Europe and selected world regions; - formation of proposals for reducing youth unemployment and justification of their feasibility. To achieve the purpose, special and general scientific methods were used, including: graphic method, comparison, formalization, systematization, generalization, induction, deduction, analysis and synthesis. Based on a study of employment in selected world regions in 2015 to 2020, it was found that there is a significant excess of youth unemployment compared to the general unemployment rate. However, unemployment may be less of a problem for young people than for adults, as it tends to be shorter. Moreover, young people may simply change jobs more often, so the higher unemployment rate observed is mainly functional and therefore not particularly harmful. Reducing youth unemployment is a difficult task, but complete inaction in this area or attempts to solve unemployment problems in other age groups at the expense of youth employment can lead to more severe economic consequences. In general, the hypothesis of the high efficiency of government employment policy, taking into account the possible consequences of displacing other age groups, is proven. Among the main motives prompting scientists to further study the problems of youth unemployment are the economic and social difficulties that the economically active population faces when they lose their jobs. In the future, concrete steps can be developed by states in the framework of employment policy, which can include individual counseling procedures, as well as systemic interventions based on the analysis of social circles in which young people are involved (for example, families and couples, not just individuals). The impact of the COVID-19 pandemic on the macroeconomic indicators of Europe and selected world regions is examined. In particular, the dynamics of real GDP and employment rates during 2012-2020 are reflected. It was found that young workers in Europe were more prone to job losses during the crisis than the elderly population. However, the downward trend in youth employment affects not only Europe but also other regions of the world, including developing countries, where youth unemployment can be three times higher than the general rate. A number of reasons for low youth employment are identified, including a barrier to entry the labor market due to the lack of experience, insecurity of jobs, high frequency of voluntary dismissals and a tendency of youth unemployment towards over-cyclicality.