The Staggering Cost Of Youth Unemployment Across Europe

As countries across Europe race to take on austerity measures and cut their debt burden, its getting harder and harder for people to find jobs. And the under-25 age group is being hit the hardest.

The latest data shows that youth unemployment in the EU is staggeringly high at 22.7% and this is clearly taking a toll on the economy.  The total unemployment rate in the EU is a more modest, albeit high, 9.8%.

Now, a report by the European Foundation for the Improvement of Living and Working Conditions (Eurofound), a tripartite body of the Union, has released a new report that shows how much youth without education, employment or training (NEET) costs their respective countries.

The NEET costs to the 21 EU countries included in this report is approximately €2 billion per week, a yearly total of about €100 billion, or 1% of aggregate GDP.

Note: The study has data for 21 countries. Public finance costs include welfare schemes like unemployment benefits child benefits, housing benefits, education-related allowances and others) as well as additional health, welfare and criminal justice expenditure. Public finance costs measures excess transfer – the difference between the total amount of benefits received by the NEET and the benefits received by those in employment. Resource costs include foregone earnings.

Austria

Total resource costs:
€2.88 billion

Total public finance costs: 
€0.23 billion

Cost as share of GDP: 
1.1%

Belgium

Total resource costs: 
€3.44 billion

Total public finance costs: 
€0.73 billion

Cost as share of GDP: 
1.2%

Belgium

Total resource costs: 
€3.44 billion

Total public finance costs: 
€0.73 billion

Cost as share of GDP: 
1.2%

Bulgaria

Total resource costs: 
€0.93 billion

Total public finance costs: 
€0.01 billion

Cost as share of GDP: 
2.6%

Cyprus

Total resource costs:
€0.22 billion

Total public finance costs: 
€0.01 billion

Cost as share of GDP: 
1.3%

Czech Republic

Total resource costs:
€1.70 billion

Total public finance costs: 
€0.03 billion

Cost as share of GDP: 
1.2%

Germany

Total resource costs: 
€13.85 billion

Total public finance costs: 
€2.26 billion

Cost as share of GDP: 
0.7%

Estonia

Total resource costs: 
€0.23 billion

Total public finance costs: 
€0.01 billion

Cost as share of GDP: 
1.5%

Hungary

Total resource costs: 
€1.58 billion

Total public finance costs: 
€0.09 billion

Cost as share of GDP: 
1.6%

Ireland

Total resource costs: 
€3.36 billion

Total public finance costs:
€0.51 billion

Cost as share of GDP: 
2.1%

Italy

Total resource costs:
€26.33 billion

Total public finance costs: 
€0.30 billion

Cost as share of GDP: 
1.7%

Lithuania

Total resource costs: 
€0.26 billion

Total public finance costs: 
€0.01 billion

Cost as share of GDP: 
0.8%

Luxembourg

Total resource costs:
€0.12 billion

Total public finance costs: 
€0.01 billion

Cost as share of GDP:
0.3%

Latvia

Total resource costs:
€0.31 billion

Total public finance costs: €0.01 billion

Cost as share of GDP: 1.4%

Netherlands

Total resource costs: 
€4.50 billion

Total public finance costs: 
€0.22 billion

Cost as share of GDP:
0.8%

Poland

Total resource costs: 
€5.02 billion

Total public finance costs: 
€0.37 billion

Cost as share of GDP: 
1.5%

Portugal

Total resource costs: 
€1.84 billion

Total public finance costs: 
€0.09 billion

Cost as share of GDP: 
1.1%

Romania

Total resource costs: 
€1.17 billion

Total public finance costs: 
€0.03 billion

Cost as share of GDP:
0.9%

Slovenia

Total resource costs:
€0.34 billion

Total public finance costs: 
€0.00 billion

Cost as share of GDP:
0.9%

Slovakia

Total resource costs:
€0.55 billion

Total public finance costs:
€0.02 billion

Cost as share of GDP:
0.9%

Spain

Total resource costs: 
€10.47 billion

Total public finance costs: 
€0.94 billion

Cost as share of GDP: 
1.1%

UK

Total resource costs: 
€14.82 billion

Total public finance costs: 
€1.55 billion

Cost as share of GDP: 
0.9%

Total resource costs: 
€93.89 billion

Total public finance costs: 
€7.43 billion

Cost as share of GDP: 
1.1%

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: