A 2015 report by a youth employment coalition revealed that one in three people between
the ages of 15 and 29, are currently unemployed, and not in school.
In total that amounts to about 600 million youths worldwide, and that number is only
expected to grow.
With a severe recession, limited opportunity, and fewer jobs; we wanted to know, how bad
is this unemployment crisis, and why can’t young people find work?
While unemployment is a global issue that affects people of all ages, the situation
is considerably worse for young people.
Over the next decade, young people will have more difficulty finding a job, than any other
age group, or any previous generation of youths.
The International Labor Organization reports that youth unemployment is around 13%, nearly
three times that of their older counterparts.
According to the report, it will take the creation of 5 million new jobs every month,
just to keep youth unemployment rates where they are today.
In the next ten years, less than half of one billion young jobseekers are expected to actually
find work.
Clearly, this situation is terrible, not only for young people, but the world economy as
a whole.
So, how did it get this bad?
Well, the most glaring reason was the 2008 global recession.
Although unemployment rates have begun to stabilize for adults, young employees, who
are more likely to hold temporary, part-time, and non-specialized jobs, have found it difficult
to keep up.
Additionally, the recession forced many older workers to postpone their retirement, and
many overqualified adults to take on jobs which are usually given to college or high
school graduates.
This severe strain on the job market has left most young people with fewer options.
Even jobs which don’t require much skill have become overwhelmingly competitive.
Some have attributed the shrinking youth workforce to higher rates of education.
However, in some countries, like the United States, this has led to an oversaturation
of degrees, and made it even harder to find work.
In other countries, a lack of education is exactly what prevents most teens and young
adults from entering the job market.
The ILO reported that nearly a third of people in low-income countries have no applicable
education whatsoever, while upper-middle income countries only see about 2% of their population
uneducated.
Youth unemployment around the world has huge consequences for the global economy.
Young employees subsidize social services through taxation, but often don’t use them
until they are older.
The lack of a young workforce means that there will be fewer experienced employees in the
future, which can lead to economic stagnation.
Youth unemployment also removes valuable consumers from the market, and slows the economy through
inactivity.
Some countries have already seen this cycle destroy their way of life, like in Greece,
which faced 58% youth unemployment in 2013.
Although many solutions have been proposed, ranging from post-capitalist automation, to
reinvestment of wealth, there is no question that having a young, unemployed generation
is bad for everybody.
Some might argue that the extent of the global job crisis shows capitalism has lost its value.
Are we nearing the end of capitalism?
Find out in our video.
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