Jobs for youth: OECD report

A new report, published by the Organisation for Economic Co-operation and Development, finds that the global economy is recovering but youth unemployment is getting worse.

The report, published last week, warns that failure to address the unemployment problem could lead to an an increasing number of young people who suffer long-term “scarring” in terms of their future employment and earnings prospects.

It recommends investment in early intervention programmes and job-search assistance, as well as a strengthening of apprenticeship schemes and other dual vocational training programmes.   With many employers wary about hiring new workers in the current economic conditions, the report also recommends the introduction of temporary subsidies to encourage employers to employ low-skilled youth and those who have completed apprenticeships. Subsidies should be targetted at SMEs to avoid large deadweight costs.

The report concludes that facilitating the school-to-work transition and improving labour market prospects for all youth should remain at the top of he political agenda in all OECD countries.