5 countries where young people can't find work

In May 2012, unemployment in the European Union reached a record high. According to Eurostat, the unemployment rate in the 17 EU countries is 11.1%, compared with 10% the year before.

There are currently a quarter of a million more unemployed people in Europe than there were a year ago. During this period, the unemployment rate in European countries for representatives of the generation under 25 jumped from 20.5% to an incredible 22.6%. But in the United States, the youth unemployment rate fell from 17.2% to 16.1%.

Despite the positive trends in this issue in the United States, the worsening situation with unemployed young people in Europe demonstrates the seriousness of the problems facing many of the largest economies of the Old World.

24/7 Wall Street looked at 29 countries included in the Eurostat report (most of which are in Europe, but the US and Japan are also included) and identified the 10 countries with the highest unemployment rates among those aged 16 to 25.

With a few exceptions, most of these countries have been hit hardest by the crisis. These are the so-called PIIGS countries: Portugal, Ireland, Italy, Greece and Spain. The rest of the countries are also struggling to cope with the crisis trends.

Spain

• Youth unemployment rate: 52.1%
• Overall unemployment rate: 24.6%
• GDP in 2010: $1.4 trillion.
• GDP growth in 2010: -0.14%
• Moody's credit rating: Baa3

Since 2010, Spain has maintained the highest overall unemployment rate of all the countries surveyed. In May 2012, the country's youth unemployment rate overtook Greece's to become the highest in the survey.

Recent indicators show growing weakness in the Spanish economy. On June 13, ratings agency Moody's downgraded Spanish government debt from A3 to Baa3 and placed it under review for future downgrades.

All this affects the situation of young people, whose representatives, despite a good education, do not work anywhere and are forced to live with their parents longer than ever.

Greece

• Youth unemployment rate: 52.1% (March 2012)
• Overall unemployment rate: 21.9% (March 2012)
• GDP in 2010: $301 billion.
• GDP growth in 2010: -3.52%
• Moody's Credit Rating: C

As the debt crisis unfolds in Europe, it has become clear that Greece is the country with the most problems.

The country's overall unemployment rate increased from 7.7% in 2008 to 21.9% in March 2012. Since December 2009, Moody's has downgraded Greece's sovereign credit rating seven times, from A1 to C.

In 2009, central government debt reached 141.97% of GDP, while GDP fell by 3.25% - and then fell again by 3.52% in 2010.

The young workforce, however, has been hit hard, with 52.1% of the workforce unemployed as of March. In Greece's June elections, a large proportion of young voters voted for Syriza, a left-wing party that promises to tackle youth unemployment.

Croatia

• Youth unemployment rate: 41.6%
• Overall unemployment rate: 15.8%
• GDP in 2010: $608.5 billion.
• GDP growth in 2010: -1.19%
• Moody's credit rating: Baa3

With unemployment rates rising significantly following the financial crisis, this is a particularly difficult time for Croatian youth.

Since 2008, Croatia's youth unemployment rate has nearly doubled from 21.9% in 2008 to 41.6% in May 2012. The former Yugoslav country's GDP fell by 5.99% in 2009 and by 1.19% in 2010, and the problems have not been resolved.

In late 2011, the World Bank announced that Croatia was likely to return to recession as the first signs of economic contraction emerged. This would likely exacerbate unemployment problems for large sections of the population and young Croatians in particular.

[ 1 ]

Slovakia

• Youth unemployment rate: 38.8%
• Overall unemployment rate: 13.6%
• GDP in 2010: $872 million.
• GDP growth in 2010: 4.24%
• Moody's Credit Rating: A2

In recent years, Slovakia has had one of the highest unemployment rates in the entire European Union.

However, as in many other European countries, unemployment in Slovakia has risen sharply in recent years, peaking at 14.5% in 2010 following the financial crisis.

Although the overall unemployment rate fell shortly thereafter, youth unemployment continued to rise.

In April, the youth unemployment rate jumped to 39.7% from 34.5% the previous month.

Slovakia's new Prime Minister Robert Fico has decided to begin building social housing and providing subsidies in order to reduce youth unemployment.

Portugal

• Youth unemployment rate: 36.4%
• Overall unemployment rate: 15.2%
• GDP in 2010: $228.57 billion.
• GDP growth in 2010: 1.38%
• Moody's credit rating: Ba3

The unemployment rate in Portugal rose from 14.7% in January to 15.2% in May 2012.

This trend is even worse among Portugal's youth. In 2000, Portugal's youth unemployment rate was only 10.5%, but it has been rising steadily. This year, the monthly youth unemployment rate has often exceeded 35%.

Portugal has become one of the most problematic areas of the European debt crisis, with its credit rating from Moody's downgraded fivefold in the past three years.

In a bid to combat rising youth unemployment, the Portuguese government has promised to reimburse companies up to 90% of social security contributions for workers aged 16 to 30 if they have previously been unemployed for more than four months.