Youth Labor Market Vulnerabilities: Characteristics, Dimensions and Costs

Abstract

In the European Union, young people are, according to Eurostat statistics, one-fifth of the total population. Even if modern Europe offers unprecedented opportunities for young people, they face challenges (aggravated by the economic crisis) related to the education and training systems and to labor market access. Youth unemployment is very high, 22.1% in 2012, while the rate of NEET young people reached 13.1% in the same year. Recently, youth labor markets in Europe recorded an increased number of fixed-term employment or temporary contracts and the tendency to change jobs several times during active life. These phenomena weaken the relationship between employers and employees. The concept of employment vulnerability can be used to describe these relationships. This paper presents a brief characterization of the European Union labor market and an analysis of the features of youth labor market in Romania. It analyzes the structure, education and gender composition of NEET groups before the crisis and its impact, and it estimates, for the NEET population, the economic costs of non-integration in the labor market or in the education system supported by various European countries.