Europe: The scarring effects of youth unemployment

The economic crisis has exacerbated youth unemployment levels. This observation is all the more worrying when we look at NEET (not in education, employment or training) levels.

The long-term consequences will probably be a deterioration in the future wages and employability of an entire generation: a real productivity shock.

It is imperative that European countries step up efforts to implement active employment policies, combined with reform of higher education and more support for intra-European mobility.

The Youth Guarantee and the Youth Employment Initiative may work but more funding needs to be allocated.