NEETS, Q2

Young People not in Education, Employment or Training, August 2013

  • For April to June 2013, there were 1.09 million young people (aged from 16 to 24) in the UK who were Not in Education, Employment or Training (NEET), virtually unchanged from January to March 2013 but down 104,000 from a year earlier.
  • For April to June 2013, the percentage of all young people in the UK who were NEET was 15.1%, unchanged from January to March 2013 but down 1.3 percentage points from a year earlier.
  • For April to June 2013, just over half (53.6%) of all young people in the UK who were NEET were looking for work and available for work and therefore classified as unemployed. The remainder were either not looking for work and/or not available for work and therefore classified as economically inactive.

European unemployment

European unemployment, May 2013: Eurostat

  • The euro area (EA17) seasonally-adjusted unemployment rate3 was 12.1% in May 2013, up from 12.0% in April
  • The EU27 unemployment rate was 10.9%, stable compared with the previous month
  • In both zones, rates have  risen markedly compared with May 2012, when they were 11.3% and 10.4% respectively
  • 26.405 million men and women in the EU27, of whom 19.222 million were in the euro area,  were unemployed in May 2013.
  • Compared with April 2013, the number of persons unemployed increased by 16 000 in the EU27 and by 67 000 in the euro area.
  • Compared with May 2012, unemployment rose by 1.324 million in the EU27 and by 1.344 million in the euro area.
  • In May 2013, 5.501 million young persons (under 25) were unemployed in the EU27, of whom 3.531 million were in the euro area.
  • Compared with May 2012, youth unemployment decreased by 77 000 in the EU27 and increased by 60 000 in the euro area.
  • In May 2013, the youth unemployment rate was 23.0% in the EU27 and 23.8% in the euro area, compared with 22.8% and 23.0% respectively in May 2012.

Value of education rises in crisis

Value of education rises in crisis: OECD

  •  The jobs gap between well-educated young people and those who left school early has continued to widen during the crisis. A good education is the best insurance against a lack of work experience
  • Unemployment rates are nearly three times higher among people without an upper secondary education (13% on average across OECD countries) than among those who have a tertiary education (5%).
  • Between 2008 and 2011, the unemployment rate for the poorly-educated rose by around 4 percentage points, while it increased by only 1.5 percentage points for the highly educated.
  • The crisis has also widened the earnings gap: the average difference in earnings from employment between the low educated and the highly educated has risen from 75% across OECD countries in 2008 to 90% in 2011. On average, the relative earnings of tertiary-educated adults are over 1.5 times that of adults with upper secondary education. People with upper secondary education earn 25% more than their peers who left school early.
  • The crisis has halted the long-term trend of rising investment in education. Public spending on educational institutions between 2009 and 2010 as a percentage of GDP fell by 1% on average across the OECD area.

Global employment trends for youth

Global Employment Trends for Youth 2013: ILO

  • 73.4 million young people – 12.6 % – are expected to be out of work in 2013, an increase of 3.5 million between 2007 and 2013.
  • The global youth unemployment rate is projected to reach 12.8 per cent by 2018
  • In advanced economies, the youth unemployment rate in 2012 was 18.1 per cent. It is likely to remain above 17 per cent until 2015 and is not predicted to drop below 17 per cent before 2016. In Greece and Spain, more than half of the economically active youth population is unemployed.
  • The share of young people being out of work for at least six months is also increasing. In the OECD countries, more than one third of young, unemployed persons were classified “long-term unemployed” in 2011 – up from one quarter of the unemployed in 2008.
  • The number of NEETs in advanced economies – those neither in employment, nor education or training is growing and stands at one in six – putting them at risk of labour market and social exclusion.

European unemployment

European unemployment: Eurostat

  • The euro area (EA17) seasonally-adjusted unemployment rate was 12.1% in March 2013, up from 12.0% in February
  • The EU27 unemployment rate was 10.9%, stable compared with February
  • In both zones, rates have risen markedly compared with March 2012, when they were 11.0% and 10.3% respectively
  • 26.521 million men and women in the EU27, of whom 19.211 million were in the euro area, were unemployed in March 2013.
  • Compared with February 2013, the number of persons unemployed increased by 69 000 in the EU27 and by 62 000 in the euro area.
  • Compared with March 2012, unemployment rose by 1.814 million in the EU27 and by 1.723 million in the euro area
  • In March 2013, 5.690 million young persons (under 25) were unemployed in the EU27, of whom 3.599 million were in the euro area
  • Compared with March 2012, youth unemployment rose by 177 000 in the EU27 and by 184 000 in the euro area.
  • In March 2013, the youth unemployment rate was 23.5% in the EU27 and 24.0% in the euro area, compared with 22.6% and 22.5% respectively in March 2012. I
  • The unemployment rate in the USA was 7.6% in March 2013. In Japan it was 4.3% in February 2013.