Britain must learn from Germany

One of the more tragic outcomes of the euro crisis has been the gut-wrenchingly high youth unemployment rates.  More than half of the young people in Greece and Spain are looking for work.

DAVOS — Youth unemployment is at staggering levels in the European Union. Every fourth young person between the ages of 15 and 24 is unemployed, amounting to around 5.5 million young adults without a job. In Spain, recent employment data indicate that the number has risen to 60 percent, a new record.   The figures serve as a stark reminder of the fundamental problems within some of Europe’s southern economies.  

We recently discussed the 'dead-weight' problem of youth unemployment in developed economies. The Economist estimates that the world's population of NEETs (not in employment, education, or training) is a stunning 290 million - or around one-quarter of the world's youth.

Inquiring minds are investigating miserable unemployment stats in Euroope as reported this morning by Eurostast. The euro area (EA17) seasonally-adjusted unemployment rate was 11.8% in November 2012, up from 11.7% in October. The EU27 unemployment rate was 10.7% in November 2012, stable compared with October. In both zones, rates have risen markedly compared with November 2011, when they were 10.6% and 10.0% respectively.

Employment prospects for many of Europe's youth are bleak due to the debt crisis and austerity measures. That's not the case in Germany, which has Europe's lowest youth unemployment rate. Part of the reason is an on-the-job apprenticeship system that serves Germany's high-tech economy.» E-Mail This     » Add to Del.icio.us