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Job creation, productivity and more equality for sustained growth



forms linked to education and training, Chart 15: Long-term unemployment rates, 2008 and 2013
which are generally seen as providing
effective stepping stones into regular 20
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and secure employment ( ). 18 2008
2013
16
High unemployment of young people 14
also affects the 25-29 age group – 12
with a rate of 14.5 % in 2013, rising % of labour force 10
to 28 % for the least educated group. 8
Overall, one out of three unemployed 6
people aged 15-24 has currently been 4
unemployed for 12 months or more, 2
compared with one out of four in 0
2009, increasing their risk of becom- EL ES HR SK PT IE BG IT CY LV SI EU LT HU PL FR BE EE RO CZ MT UK DE NL DK LU FI SE AT
ing detached from the labour market.
Source: Eurostat, une_ltu_a.
The social problem is particularly acute
for young people who are neither in
employment nor in education and Chart 16: Exit rate from short-term unemployment
training (NEET) with the NEET rates (less than one year) and long-term unemployment
having increased most for those aged (more than one year) into employment between 2012/13
20-24 and 25-29 since 2007. For the
20-24 years old, the NEET rate for the 60
EU currently stands at over 18.5 % in 50
2013, an increase of more than 3 pps EE DK AT
since 2007. 40 SI NL

NEET rates for 20-24 year olds show a Exit rate from long-term unemploment into employment (2012/2013) 30 PT FR FI CZ SE UK
clear North-South divide within the EU, SK ES CY HU LV DE
ranging from less than 10 % in Luxem- 20 RO BG IT PL IE LT
bourg, the Netherlands, Denmark, Aus- EL HR MT
tria and Germany (but also Malta) to 10
above 25 % in Croatia, Bulgaria, Spain, 0
Cyprus, Greece and Italy. 0 10 20 30 40 50 60
Exit rate from short-term unemploment into employment (2012/2013)
Best practices point to the value added Source: Eurostat, EU-LFS, ad-hoc transition calculations based on longitudinal data. No data for BE and
of measures which improve school-to LU. Exceptions to the reference year: NL: 2011/12 instead of 2012/13.
work transitions and, more generally,
labour market insertion. Moreover, a 3.2. Long-term into unemployment have returned close
comprehensive framework of EU meas- unemployment has doubled, to pre-crisis levels, but that outflows to
ures exists to help tackle youth unem- different policies can help employment have fallen for both short-
ployment ( ), the main ones being prevent and tackle it and long-term unemployed.
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the Youth Guarantee ( ), reforms of
vocational education and training sys- While long-term unemployment (unem- The overall state of the economy remains
tems, support for public employment ployed for 12 months or more) has a powerful factor in determining changes
services and EURES (the pan-European increased in most Member States in in levels and flows to and from long-term
job search network). The focus on recent years, doubling between 2008 and unemployment, but there are also strong
the under-25s may not come at the 2013 at EU level, the problem is particu - country-specific effects with some Mem-
expense of the 25-29 age group, which larly acute in some Member States, nota - ber States (such as the Netherlands, Swe -
also requires policy attention due to a bly Spain and Greece (Chart 15). In recent den or Finland) ensuring high transition
similar lack of job opportunities. months, very long-term unemployment rates back to employment in contrast to
(for 24 months or more) has continued others, for instance Slovakia, Greece and
to increase, while overall unemployment Bulgaria (see Chart 16).
has declined modestly.
In general, one in five of the long-term
Long-term unemployment affects some unemployed in the EU has never worked,
( ) See also ‘Special Focus: Youth labour market
54
adjustment and temporary contracts’ in specific groups more severely than oth- three quarters of them being below
European Commission (2013d). ers: men, young people or low-skilled 35 years of age, creating a strong risk
( ) See European Commission (2014d). workers and, particularly, those employed of marginalisation. In Member States
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( ) The Youth Guarantee seeks to ensure that in declining occupations and sectors, where temporary contracts play an
Member States offer all young people up to
age 25 a quality job, continued education, whose skills often need upgrading. In this important role, repeated multiple spells
an apprenticeship or a traineeship within respect, the most recent data on labour of short-term unemployment are a wide -
four months of leaving formal education or
becoming unemployed. market transitions shows that inflows spread phenomenon.
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