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Youth Employment Initiative

Updated 17 June 2014

The Youth Employment Initiative (‘YEI’) was adopted with the revision of the European Social Fund in December 2013. It provides additional funding of €3 billion from the EU budget and at least another €3 billion from national ESF allocations for existing youth employment measures. The YEI will support direct actions for individuals and not structural reforms. These can be, for example, apprenticeships and traineeships, job offers, business start-up support, hiring subsidies – aimed at placing the young person into the labour market. To achieve its objectives quickly, appropriations for the YEI are frontloaded within the first two years of the MFF (2014 and 2015).

Eligible regions for YEI for 2014-2015 are those NUTS level 2 regions that had youth unemployment rates higher than 25% in 2012 and, for Member States where the youth unemployment rate had increased by more than 30 % in 2012, regions that have youth unemployment rates of more than 20 % in 2012.

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Discussion

10 thoughts on “Youth Employment Initiative

  1. Dear Sir or Madam,

    My name is Manuel Calvo. I was born in Spain but raised and educated in Canada and the United States.
    I am now in my father’s hometown, A Coruña, Spain trying to startup my business as an English Teacher here in Spain and I have noticed some differences between European and American cultures that I think might be the reason of youth unemployement rates.

    First, I would like to point out that all Europe has done great things regarding equality, health care, education or solidarity among others. This is incredible that you are given each others mobility opportunities such as Erasmus or the European Health Care Card. Congratulations on that.

    However, I found some loopholes in your legislation and working policies that i understand might be the reason why young Europeans can’t find their opportunities after finishing their degrees. And those are regarding three basic aspects of this actions: Goods importation programmes, European youth labor programmes and National working Integration programmes.

    Goods and importation programmes. As odd as it sounds, although the economic crisis, Europe is nowadays one of the biggest good importer in the world, specially food, meat, veggetables and fish. However, most of those products could be indeed produced inside the Union. Some clear example as olive oil, fish and milk. Europe import them from a variety of different continents arguing they are more affordable but then expend thousands of million in unemployement benefits among other policies such as the Spanish PER system. I think it is vital to raise importation taxes to the point that the European Union makes sure that inside producers can compete equally with the others.

    European youth labor programmes. Labor inmersion in Canada and the States does not start from your collegue degree. Actually, students often start working at the ages of 16-18. This is crucial that the European Union creates a plan aiming young students to start working temprorary at the age of 18. To do that, the European Parliament has to create a programme which autorize commerce to open their shops on Saturday and Sundays, with no additional cost, if they hire young european workers during the weekend. In adition to that, and for a period of 2 years, the European Union might bear the full cost of Personal Income Tax and Social Securities for those young workers.

    National working integraton programmes. In connection with the above, some European Nations such as Greece, Spain, Italy or Portugal have to understand that for new small business, hiring new workers is expensive and risky, and when talking about recent graduated students, even more because of the total lack of working experience. Is for that reason that European Nations need an special plan. The problem of hiring does never come for workers but from National Institutions and this is because PIT and Social Security expenses are fixed, ridiculously high and mandatory. THe European Union may urge those countries to stablish a working integration programme, in which the State bears the cost of those mandatory national expenses for a period of two year and for yough workers from the ages of 22 to 30 years old.

    To conclude, I am going to tell you about my personal case. I am now, as I previously said, running my new business. I would love to hire one or two workers, and regarding the economic situation here in Spain, workers are willing to come and help me out for an average salary with no problem. But the problem comes when we go to the Spanish Social Security Office, where I have to sign my liability. For an average of net incomes 1.500€/month my expenses would be: 1.500€ + 18%PIT + 6,4% and 14 month (I don’t know why). Additonally I’ll have to save another 5% in case the worker would be made redundant. At the end, an annual total expense of 26.300 or 2.200€ monthly.
    As you can see, the problem is not the salary or the young worker, but the tax liability with the State.

    Hope this could help you.

    Yours faithsully,

    Manuel

    Like

    Posted by Manuel Calvo | February 18, 2015, 19:19
  2. How about guaranteeing work for the over 45 segment? There are thousands of unemployed, highly skilled workers struggling to find decent work because we are deemed ‘too old’ to be economically viable for industry. After all, WE only have 20 years left in the workplace.
    ONLY 20 years – which completely ignores the 25 or so years experience & maturity we already have, ready to pass on to the up & coming ‘youth’.
    It completely ignores the fact that the last 20 years of our working lives could guarantee us a decent pension so we do not sicken and die of malnutrition, heat poverty or homelessness in our retirement.
    It completely ignores the fact that without a decent pension we will drain more NHS and SocSvc resources than can be replaced through the taxes of ‘the youth’.
    It completely ignores that we are suffering the above NOW!
    Spoon-feed ‘the youth’ these guaranteed jobs at your and their peril – it will destroy their initiative to make their own way & fend for themselves, fostering yet another generation dependent on ‘the nanny state’ to tell them what to think, where to go, when to be there and how to do it.

    Like

    Posted by Carol Hutton | February 16, 2015, 23:57
  3. In accordance with our moderation policy we have removed one comment on this post. It included insulting elements: https://epthinktank.eu/about/

    Like

    Posted by EPRSAdmin | February 16, 2015, 18:53
  4. what about young people who are above 25?

    Like

    Posted by ana | February 15, 2015, 18:28
  5. How many jobs will be created by these 6 billions (at best) ? Who will be the employers? This should be compared with the more than 27 million unemployed in the eurozone. We need more ambitious measures; unless we want unemployment to stay. http://www.social-europe.eu/2014/04/unemployment-in-europe/

    Like

    Posted by Frank Roels | July 24, 2014, 19:45
    • Hello!
      I am very glad to read about this theme, because problem of unemployment is actual in my country too, I come form Latvia, and as I see in this graph “Youth unemployment rate 2012” our unempluyment rate is from 25% to 35%, and that s is very high.
      One of the main reason of this situation is not because of education level of demography. The reason why it is hard to get a job here is that potential epmloyers discriminate those who doesent know russian language. Specially people who are born after the collapse of Soviet Union are better in English, German, French and other European language, but here from employes perspective is not nessesery.

      It would be very good to do some research, what are the motive why for youngsters it is very hard to find a good job.

      Like

      Posted by Solvita Solvita | February 15, 2015, 18:40

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