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.
Advertisements

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.

Global Employment Trends

Global Employment Trends, 2013: ILO

  • Global labour markets are worsening again
  • New recession conditions in Europe have been spilling over globally
  • Policy incoherence has led to heightened uncertainty, preventing stronger investment and faster job creation
  • The continuing nature of the crisis has worsened labour market mismatches, intensifying downside labour market risks
  • Job creation rates are particularly low, as typically happens after a financial crisis
  • The jobs crisis pushes more and more women and men out of the labour market
  • Youth remain particularly affected by the crisis
  • Weak labour markets holding back private consumption and economic growth
  • Despite a recovery over the medium run, unemployment remains elevated
  • Labour productivity growth has slowed sharply, preventing further gains in living standards
  • Structural change has slowed down in emerging and developing economies, damaging engines of growth
  • Further progress in reducing working poverty and vulnerable employment requires higher productivity growth and faster structural change
  • A new consumer class is emerging, but is not yet large enough to constitute an independent engine of growth

 

 

 

European unemployment

European unemployment, November 2012: Eurostat

  • The euro area (EA17) seasonally-adjusted unemployment rate was 11.8% in November 2012, up from 11.7% in October
  • The EU27 unemployment rate was 10.7% in November 2012, stable compared with October
  • In both  zones, rates have risen markedly compared with November 2011, when they were 10.6% and 10.0% respectively.
  • 26.061 million men and women in the EU27, of whom 18.820 million were in the euro area,

    were unemployed in November 2012.

  • Compared with October 2012, the number of persons unemployed increased

    by 154 000 in the EU27 and by 113 000 in the euro area.

  • Compared with November 2011, unemployment rose by

    2.012 million in the EU27 and by 2.015 million in the euro area.

  • In November 2012, 5.799 million young persons (under 25) were unemployed in the EU27, of whom 3.733 million
    were in the euro area

Young people not in employment, education or training are more than twice as likely to feel unable to cope as their peers

Youth Index 2013: The Princes Trust

  • One in ten young people feel they cannot cope with day-to-day life
  • Young people not in employment, education or training (NEETs) are more than twice as likely to feel unable to cope as their peers.
  • More than one in five young people (22 per cent) did not have someone to talk to about their problems while they were growing up.
  • 27 per cent of young people in work feel down or depressed ‘always’ or ‘often’, and this increases to almost half (48 per cent) among NEETs

Labour Market Statistics, December 2012 : ONS

  • The unemployment rate was 7.8 per cent of the economically active population, down 0.2 on May to July 2012 and down 0.5 on a year earlier. There were 2.51 million unemployed people, down 82,000 on May to July 2012 and down 128,000 on a year earlier
  • The employment rate for those aged from 16 to 64 was 71.2 per cent, up 0.1 on May to July 2012 and up 0.9 on a year earlier. There were 29.60 million people in employment aged 16 and over, up 40,000 on May to July 2012 and up 499,000 on a year earlier.
  • The inactivity rate for those aged from 16 to 64 was 22.6 per cent, up 0.1 on May to July 2012 but down 0.6 on a year earlier. There were 9.07 million economically inactive people aged from 16 to 64, up 60,000 on May to July 2012 but down 249,000 on a year earlier.