Youth unemployment in crisis (EL, ES, IE, PT)

Youth unemployment (15-24 years old) has been rising at an alarming pace since 2009 reaching rates higher than unemployment for both men and women in all four countries. Data for selected OECD countries illustrates that the correlation between fiscal tightening and youth unemployment is the highest for EL, ES and PT and also very high for IE: estimates show that a one percentage point increase in the fiscal balance increases youth unemployment by 1.5 percentage points. Research also confirms that variations in youth unemployment are strongly correlated with variations in fiscal policy. Austerity affects youth in many ways: they have to compete with a larger number of more experienced job-seekers for fewer jobs due to a general rise in unemployment, they are usually employed in sectors with high sensitivity to economic contraction (e.g. manufacturing) and they are dispropor-tionately present among those on less secure temporary contracts or in part-time jobs (whose numbers are rising due to labour market reforms).