As countries across Europe race to take on austerity measures and cut their debt burden, its getting harder and harder for people to find jobs. And the under-25 age group is being hit the hardest.
The latest data shows that youth unemployment in the EU is staggeringly high at 22.7% and this is clearly taking a toll on the economy. The total unemployment rate in the EU is a more modest, albeit high, 9.8%.
Now, a report by the European Foundation for the Improvement of Living and Working Conditions (Eurofound), a tripartite body of the Union, has released a new report that shows how much youth without education, employment or training (NEET) costs their respective countries.
The NEET costs to the 21 EU countries included in this report is approximately €2 billion per week, a yearly total of about €100 billion, or 1% of aggregate GDP.
Note: The study has data for 21 countries. Public finance costs include welfare schemes like unemployment benefits child benefits, housing benefits, education-related allowances and others) as well as additional health, welfare and criminal justice expenditure. Public finance costs measures excess transfer - the difference between the total amount of benefits received by the NEET and the benefits received by those in employment. Resource costs include foregone earnings.
Austria
Total resource costs:
€2.88 billion
Total public finance costs:
€0.23 billion
Cost as share of GDP:
1.1%
Source: Eurofound
Belgium
Total resource costs:
€3.44 billion
Total public finance costs:
€0.73 billion
Cost as share of GDP:
1.2%
Source: Eurofound
Bulgaria
Total resource costs:
€0.93 billion
Total public finance costs:
€0.01 billion
Cost as share of GDP:
2.6%
Source: EurofoundT
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