Flagship initiative "Youth on the Move" – Going local event - Madrid, 6 June 2011

On the 6 June 2011, at the headquarters of the Spanish Economic and Social Council (Consejo Económico y Social – CES), a conference entitled Youth Unemployment was held, jointly organized by the CES and the Labour Market Observatory (LMO) of the European Economic and Social Committee (EESC).

The conference is a follow-up of the EESC opinion on the Europe 2020 flagship initiative "Youth on the Move", and it has  focused on youth unemployment,  a tragic waste of potential that not only undermines economic growth, but it also has serious consequences for social cohesion in the future.

Conclusions by Krzysztof Pater
President of the Labour Market Observatory
of the European Economic and Social Committee

Youth unemployment is a tragic waste of potential, which not only undermines economic growth but will also have serious consequences for social cohesion in the future. Furthermore, unemployment is a societal problem that comes with huge individual costs. As we all know, this is an issue of particular concern to Spain, with unemployment rates that are almost beyond comprehension.

There is no single solution to the problem of youth unemployment. Action needs to be taken along at least four lines.

Firstly, economic growth needs to be regenerated. When the economy grows so do the employment possibilities for young people. In this respect several factors are important, such as the existence of a healthy and efficient financial system, the level of households' demand and a high level of innovation.

The second group of actions concerns education and qualifications. We must tackle the problem of early school leavers. We need to design our education and training in such a way that young people acquire the competences needed on the labour market. In this respect informal education is also very important.

Thirdly, the regulatory framework of our labour markets needs to be reconsidered. And here we need to strike the balance between flexibility and security for the employed. A very important element is the likelihood of temporary and/or part time contracts being transformed after some time into indefinite full time contracts. A young person going through a precarious period in the beginning of his/her career must have a clear perspective of reaching a more stable situation. Real self-employment (as opposed to bogus self employment) can also be an important means for young people to get to work.

Fourthly, it is necessary to look at employment services (whether managed by public authorities or social partners). Early intervention whenever a youngster is in danger of losing his/her job is important, as is the idea of subsidized employment for vulnerable groups who would have difficulties in accessing the ordinary labour market, particularly young people without qualifications or with very low qualifications.