Tuesday, May 7

Nearly a quarter of the planet's youth (290 million) are neither working nor studying

"Official figures assembled by the International Labour Organisation say that 75m young people are unemployed, or 6% of all 15- to 24-year-olds. But going by youth inactivity, which includes all those who are neither in work nor education, things look even worse. The OECD, an intergovernmental think-tank, counts 26m young people in the rich world as 'NEETS': not in employment, education or training. A World Bank database compiled from households shows more than 260m young people in developing economies are similarly 'inactive'. The Economist calculates that, all told, almost 290m are neither working nor studying: almost a quarter of the planet's youth." …
"A clutch of academic papers, based mainly on American statistics, shows that people who begin their careers without work are likely to have lower wages and greater odds of future joblessness than those who don’t. A wage penalty of up to 20%, lasting for around 20 years, is common. The scarring seems to worsen fast with the length of joblessness and is handed down to the next generation, too." …
"The damage may be less in dynamic economies and greatest in stagnant ones where unemployment comes in long bouts—as in the swathe of countries around the Mediterranean. Spain, France, Italy and Greece have some of the highest youth joblessness in the rich world. Morocco, Egypt and other north African and Middle Eastern countries have among the worst rates in the emerging world. Though they are at different stages of development, these countries all suffer disproportionately from employment’s main curses: low growth, clogged labour markets and a mismatch between education and work." 
"Countries with the lowest youth jobless rates have a close relationship between education and work. Germany has a long tradition of high-quality vocational education and apprenticeships, which in recent years have helped it reduce youth unemployment despite only modest growth. Countries with high youth unemployment are short of such links."
Generation jobless (The Economist)