Are Unemployment Rates Among Young People Reaching Crisis Levels?

 

Recent uprisings in the Middle East, rising crime statistics, extremist groups terrorizing the world, and gang membership at all time highs’just a product of a bad economy? Are the police not doing their job or could global warming be heating things up? All these factors contribute in some measure but they are all temporary problems that can be resolved. Look below the surface at the age of those involved, the sector of the population with the most time on their hands and the most energy. The underlying problem is unemployment among 16 to 24 year olds.

The Organization for Economic Cooperation and Development (OECD) reports on trends in 30 countries, the latest findings are that nearly 15 million workers aged 16 to 24 are unemployed ? 4 million more than in 2007. In Spain 40% are unemployed. In France, Italy and the United States, one in four are unemployed. In the United States the unemployment rate across the board is 9.7% but for the 16 to 24 year old group the rate is 18.8% and accounts for a quarter of America’s unemployed.

The OECD found negative long-term consequences that go beyond the depressing effect on future wages and employability. Such “scarring” extends to other aspects of life including happiness, job satisfaction, and health many years into the future. As part of its year-long focus on youth, the International Labor Organization (ILO) found that as the number of young people stuck in working poverty increases the cycle of working poverty persists for at least another generation. As time goes on, the investment in education is lost. Then, while spending is increased to correct that problem, contributions to social security systems drop. “Young people are the drivers of economic development” says ILO Director-General Juan Somavia. Unemployment becomes a social, economic and political problem. In the book The Looming Tower: Al-Quaeda and the Road to 9/11 by Lawrence Wright, he traces the life cycle and ideology of those who join Al-Quaeda. By far the majority of those drawn to such a group come from the poor and unemployed in the Middle East. There is no way for these men to better themselves and they find an outlet for their frustration and anger through the terrorist organization.

What can be done? The obvious answer is “jobs” but so far that has not happened. Programs like JOBSTART and the Job Training and Partnership Act lack results. Job Corps that was created to provide training and benefits for 60,000 disadvantaged youth aged 16 to 24 costs the government $24,000 per participant but has not produced any long-term difference between those who participated and those who did not. We need policies that target young workers specifically. In Germany where the youth unemployment rate is lowest the problem is alleviated by an extensive apprenticeship program. In the final solution, improved high school graduation rates and access to higher learning or vocational training must be addressed.