International Lessons: youth unemployment in the global context

1. International Lessons: youth unemployment in the global context Lizzie Crowley

2. The UK has a growing structural youth unemployment problem… Number of young people aged 16-24 years who have been unemployed for 12 months or more 2000-2012

3. …but many other countries have managed to maintain low levels of youth unemployment Youth unemployment ratio - % of 15-24 years old who are unemployed The UK

4. Are there lessons the UK can learn from other countries?

5. Germany – falling youth unemployment since the mid 2000s Youth unemployment ratio - % of the 15-24 years old population who are unemployed

6. The Dual Apprenticeship System Appears to have sheltered young people from the downturn: • Large scale and high quality training - A common pathway – 60 per cent of young people choose vocational pathway - 4x as many apprentices than UK • High integration between education and labour market -and the taught element is much greater than in the UK accounting for 2 days per week compared to 1 a month • High levels of employer engagement at all levels - All large employers offer apprenticeships – compared to just a third in the UK, and employers heavily involved in design and delivery.

7. Denmark- recession led to a rapid rise in youth unemployment in but long-term youth unemployment has remained very low… Long-term youth unemployment in OECD 2001-2011 % of unemployed The UK Denmark

8. Denmark – Active Labour Market Policy (ALMP) Highest expenditure on ALMP amongst OECD nations Progressively reduced time before activation – passive period is being phased out this year Immediate activation of all 18-19 year olds Better co-ordination between authorities – including data exchange agreement Re-integration with education for those under 25 who have not completed formal education

9. The Netherlands has a highly flexible youth labour market which supports high levels of youth employment…

10. The impact of non-standard work • Most forms of temporary employment act as a stepping stone to permanent employment rather than a trap • A large amount of part-time jobs are permanent, have similar protection levels to full-time jobs, and often reflect choice Benefits include: • Less scarring than unemployment • Allows development of work experience and human capital • Strengthens social networks and contacts with employers But… • Some evidence that the system impacts negatively on the lowest skilled

11. Australia low and stable youth unemployment levels Youth unemployment ratio - % of the 15-24 years old population who are unemployed

12. Australia – Work for Your Dole Evolution of welfare to work policy in Australia – UK has closely followed Australian model One of the first countries to introduce mandatory work activity – Work for Your Dole in 1997 originally for youth Effectiveness of mandatory work experience activity highly questionable: • Deterrence effect – job seekers exit benefit system, pushing young people out of support system • Lock in effect – job search activity reduced so participation reduces chances of entry to employment

13. Lessons for the UK? Difficulty in importing policies from elsewhere but there are key things UK could learn: From Denmark – early intervention, more local control and co-ordination, and prioritisation of reintegration into education for those with no or low qualifications. From Germany - increasing employer engagement, reviewing levels of academic context, Netherlands – expansion of part-time opps for young people. ensuring appropriate work experience whilst at school. From Australia – avoid a ‘work first’ policy research shows that these policies are largely ineffective and can impact negatively on a persons chances of finding a job as they reduce the time for job search