Youth unemployment has never been so high in recent years. Nearly twenty percent of 15 to 24-year-olds were without work in the third quarter of this year, figures from statistics agency Statbel show. This is the highest figure since 2017. Even during the corona period – when many companies did not offer new vacancies – young people were working more.
The VDAB also notices this increase. “We see an increase of four percent among young people compared to last year.” The VDAB does qualify that there is always a peak in youth unemployment during the third quarter, because this is traditionally the graduation moment. Young people are looking for their first job during the summer months. (Continue reading below the graph)
Although that does not alter the fact that the figure is higher than in recent years. “The number of job seekers is increasing is a general trend. Last year, the share of job seekers without work increased by six percent,” according to the VDAB.
How come?
“Youth unemployment is traditionally quite high in our country,” says labor economist Stijn Baert (UGent). “This is because studying and working are strongly separated. At school the focus is mainly on learning. In countries that have more dual systems, such as Germany, young people start learning in the workplace at the end of their studies. We see a softer transition to work life there.”
“Compare it to a queue: young people are now at the back”
Stijn Baert
Labor economist
Another logical explanation: there are fewer vacancies this year than in previous years. “In the corona year 2020, young people were able to anticipate the special circumstances. For example, they studied something or did volunteer work in the vaccination centers. As a result, they were not included in the unemployment statistics.” (Read more below the photo)
Stijn Baert. — © Jimmy Kets
Furthermore, employers now prefer to hire someone with experience, says Professor Baert. “If there are a lot of jobs, employers do not have the luxury of choosing only experienced workers. If there are fewer jobs, companies can select based on experience. Compare it to a queue: young people are now at the back.” Another reason that youth are not immediately chosen is that firing someone is expensive in our labor market. “Even so, if you compare it with most other European countries. Employers will therefore be less inclined to give new people a chance. If things don’t go well, it’s hard to get rid of them.”
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The fact that young people set higher standards could also play a role. “Because their demands are not met with the jobs that are currently available, especially jobs without a required diploma, they remain unemployed for a little longer.”
Are the numbers problematic?
Is youth unemployment causing problems for our society? “The literature talks about ‘the scar effect’,” says Baert. “That is to say: those who were unemployed for a longer period of time at the start of their career often remain unemployed later in their career. People lose their self-confidence, build up less knowledge and less network. And employers don’t like to see gaps on the resume. Those who are or have been unemployed for a long time are seen as less motivated and more difficult to train.” Young people therefore benefit from getting started quickly.
“The fact that we have unemployed young people and open vacancies represents a missed opportunity”
Stijn Baert
Labor economist
Finally, our economy also benefits from this. “To maintain our welfare state and continue to pay pensions and health insurance, we need to get more people working. In this way we put more strong support behind social security. The fact that we have unemployed young people and open vacancies represents a missed opportunity. There are fewer new vacancies than in recent years, but still a lot. Only the Netherlands has more in Europe.”