young people not in employment, education or training (neets
TRANSCRIPT
Young people not in employment, education or training (NEETs) & the
costs of doing nothing
Stefanie Ledermaier, [email protected] Foundation for the Improvement of Living and Working Conditions
Youth Studies Forum 2014“Causes and consequences of the generational exclusion of young people”
Lleida, 28 November 2014
Outline of today’s presentation
I. Introducing the issue of Young people not in employment, education or training (NEETs)
III. Highlighting key messages and policy implications
II. The cost associated with NEETs phenomena
IV. Time for questions and answers
I. So… NEETs!
The youth unemployment rate in July 2014 reached 21.7% <5 million
• Youth unemployment rateshave doubled or in some cases tripled since the onset of the recession
Youth employment and NEETs across the EU
• Number of young people not in employment, education or training (NEET) increased to currently 12.9% ≈ 7.8 million
Relevance of NEET indicator
Traditional indicators for labour market participation insufficient.
NEET indicator allows systematic monitoring of the situation of young people not in employment, education or training
Need to indicate who is likely to face difficulties finding a job.
Not in Employment, Education and Training
• 7.8million aged 15‐24 – 13% • 14.7million under 30 – 15.8%• 7.8million aged 15‐24 – 13% • 14.7million under 30 – 15.8%
2012/13 decrease in:DE, DK, IE, EE, LT, LV, MT
2011/12 increases elsewhere, but especially in:NL, HR, IT, PT, CY, GR, FI
2012
EU‐LFS
Potential risk factors of ending up NEET
• Low educational level (+300%)
• Living in remote areas (+150%)
• Immigration Background (+70%)
• Suffering Disabilities (+40%)
• Parents with Low educ. level (+200%)
• Divorced parent (+40%)
• Parents experienced unempl. (+17%)
• Low household income (+100%)
However…
NEETs are no homogenous group…
The heterogeneity of the NEET population
II. The cost of NEETs
Eurofound first calculated the cost of the NEET phenomena in 2012 (updated in 2014)
‘Costs considered were restricted to the excess of welfare transfer and the lost contribution of the individual to society, through the lack of earnings tax and social contributions. These costs did not address the increased risks faced by NEETs of experiencing mental and physical health problems and of pursuing dangerous lifestyles; for this reason, estimates have to be interpreted as very conservative.’
Source: Eurofound, 2012: p.80
The cost of the NEET phenomena
119 BN
2008
139 BN
147 BN153 BN
162 BN
2009 2010 2011 2012
Billion
Euro
Taking into account the foregone earnings and the additional expenditure for the welfare systems, in 2012 we estimated the economic loss of having 14 million NEETs.
Eurofound elaboration
The cost of the NEET phenomena
• Concerns on disaffection of NEETs: are they likely to opt-out from the participation to the democratic and civic society engagement of our society?
The societal cost of the NEET phenomena
• Young People scored considerably lower compared to the other age categories in all the dimensions considered
• At the EU level, NEETs and in particular those who are unemployed, scored even lower.
“Loyalty”
““ExitExit””
““VoiceVoice””
Political and
Social Engagem
ent of NEETs in
201
1 –Eurofoun
d
Eurofound elaboration
The effect of being NEET on young people
On a personal level, being NEET can be devastating. NEETs are…
…not accumulating human capital through formal channels
…more likely to face several disadvantages
…more likely to experience future poor employment outcomes
…more likely to have dangerous lifestyles
…more likely to experience mental & physical health problems
III. Key messages and policy implications
Key messages ‐ NEETs
…are not one homogenous group of young people – some are vulnerable, some are not
…are at risk of labour market and societal exclusion
…are high – a total of €162 billion per year
NEETs…
The cost associated with NEETs…
…the NEET phenomena moreover could affect society more broadly
Policy implications ‐ NEETs
…should reach them early on – such as the Youth Guarantee
…should provide comprehensive and tailored support
…need to take account of the heterogeneity of NEETs
Policies addressing NEETs…
Moreover, we need to further our understanding of the different sub‐groups in the NEET group in order to design informed policies for reaching these young people in need.
Young people are a fundamental asset of our economies and societies.
Empowering young people by creating favourable conditions for them to develop their talents and to actively participate inthe labour market is essential for economic and social development and for the sustainability of society.
IV. Questions & answers
www.eurofound.europa.eu
Thank you for your attention