Youth's Economy - Issue 01/November, 2014 | Seite 6

To understand how to tackle something, you have to understand the root problem that has caused it. We must do the same with unemployment.

I found an article from the Economics Help website which went into detail about the causes of youth unemployment in the UK. I am going to briefly outline what the article says and then suggest when needs to be done to tackle the issue.

7 reasons were given as to what causes youth unemployment:

1)Lack of Qualifications.

A correlation was found between youth unemployment and poor GCSE Maths and English results. Simply, with the nature of the labour market, many young people lack the necessary skills and training to impress employers.

2)Geographic Unemployment.

Research found that youth unemployment was concentrated in certain areas in the UK – this is usually in inner cities which there is a cycle of low achievement and low expectations.

3)Cyclical Unemployment.

The biggest cause of unemployment in UK is often cyclical or demand-deficient unemployment. This is caused by the falling output which occurred in the recession. During the recession, youth unemployment rose more than general unemployment did. It was convenient for businesses to stop taking on young people as they were generally less experienced.

4)Frictional Unemployment. People leaving school spend time looking for the right job.

5)Cultural and Social Factors. Youth unemployment is often highest amongst deprived areas where there is pessimism over job prospects. Youth unemployment is often higher among people who have history of broken families, drug use or criminal record.

6)Underground Economy. Official Unemployment may occur in areas where there are unofficial jobs for people to take. These jobs may be illegal such as dealing in soft drugs. However, it is hard to know the extent of these unofficial jobs and it is easy to make sweeping generalisations about deprived areas.

7)Hysteresis.

Hysteresis is the idea that past unemployment trends are likely to cause future unemployment. If young people have been unemployed in the past, it becomes increasingly difficult to get a job. This is because

1.Lack of jobs may cause young workers to become unmotivated

2.A lack of past employment may cause firms to be unwilling to hire in the first place.

3.Unemployment means workers don’t have the opportunity to learn skills and on the job training.

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tackling youth unemployment

Despite the fact that unemployment in the UK improved, it is still there and the problem has not been eradicated.

5 Issue 01/November, 2014