Will ‘Youth Guarantee’ Be Able to Generate Employment in the Euro Zone?

Will Youth Guarantee Be Able to Generate Employment in the Euro Zone
Will Youth Guarantee Be Able to Generate Employment in the Euro Zone

Though it is a welcoming step that the EU is working to reduce youth unemployment, particularly in southern Europe, skepticism has increased about its success whether it will succeed in its purpose. The scheme is aimed to increase the youth-employment rate in line with the wider EU target of achieving a 75% employment rate for the working-age population from 20-64 years.

Every European Will Have a Job

EU leaders have pledged €8 billion for the worst-hit countries over the next two years to generate employment opportunities. However, when the fund is compared with the scale of the unemployment the amount is meager. The amount that has to be spent in the next two years is just 0.1% of GDP a year for the eligible countries.

The amount if translated will be €850/yr/per person from the countries that have been hit by massive unemployment. The plan is to replicate the German model wherein youths are given apprenticeships and vocational training and help them get employment. As Germany has shown great success with its youth empowerment schemes, European leaders, particularly the ones from southern Europe seem to be impressed with them and trying to replicate the same.


Half Hearted Efforts

European Union leaders admit that youth unemployment is Europe’s major problem and if not addressed well it can lead to a lost generation. The increasing number of the youths, who neither have work, nor training nor education to meet the job requirements is another issue; this can be addressed only with persistent insistence on employment training.

The meagerness of the fund and the issue of unemployment show that EU leaders are lacking boldness and putting half hearted efforts to analyze and tackle the problem. Southern Europe has been reeling under massive unemployment for the last three years and this effort is likely to disappoint the youths at hand.