Euro Zone Youth Unemployment Has Soared in Recent Years
Youth unemployment rates are certainly high in the United States, but they have nothing on some on the rates that are currently being posted in the once stable Eurozone.
After the introduction of the Euro in the late '90s, youth unemployment dropped substantially in countries such as Spain, France and Greece.
Following the collapse of Lehman Brothers, a shockwave hit the global financial system and unemployment rates soared throughout the world. As is always the case in a recession, youth unemployment rates ramped up much faster than average unemployment rates. It's not hard to see why - when many millions of people are out of work, companies who are hiring will cherry pick from the most experienced and skilled of applicants. Why hire a kid when you can hire an older worker with 20 years of experience for the same price?
Youth unemployment rates have soared in practically every euro zone country other than Germany since the implosion of Lehman Brothers.
Youths have been particularly hard hit in Spain and Greece, as both countries have youth unemployment rates of nearly 50%.
Ireland, Portugal and Italy all have youth unemployment rates of approximately 30%, while France is currently sitting at around 25%.
Germany, on the other hand, has seen very stable unemployment rates over the past three years or so, and their youth unemployment rate is actually LOWER compared to pre-"Great Recession".
Things are bad in the United States to be sure, but there is a different level of "bad" taking place in the Euro Zone right now.
Source: The Atlantic
Filed under: The Economic Meltdown