Nov 18, 2013

EU Summit Outcome “Cold Comfort” for Unemployed Youths, says USI President

Joe O'Connor stated that the current outlook for the Youth Guarantee is "not close to sufficient".

Fiona GribbenStaff Writer

European leaders who convened at the Élysée Palace for a summit on youth employment on Monday 11 November, have expressed hope that Europe’s high youth unemployment rate, which currently stands at an average 23.5%, will improve over the next two years. This comes as a result of plans to initiate the Youth Employment Initiative on 1 January 2014. However, Union of Students in Ireland (USI) President Joe O’Connor has said that the length of time expected before Ireland can benefit from the initiative – nine months rather than four – will be “cold comfort” for the many Irish graduates currently without jobs.

“The four million initial investment in the Budget for the Youth Guarantee is not close to sufficient.”

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Countries that have submitted action plans by end of the year may begin drawing from the €6 billion Youth Employment Initiative on 1 January. Ireland has sought advice from the Organisation for Economic Co-operation and Development in drawing up its plan; once submitted, the government can then spend the money as it sees fit. Under the Youth Guarantee, no unemployed youth would be allowed to go longer than four months without a job offer or training.

However O’Connor stated that “the four million initial investment in the Budget for the Youth Guarantee is not close to sufficient. It is reported that the length of time before activation of the Guarantee will be nine months instead of four. This will be cold comfort for the very many graduates that will likely be forced into emigration prior to then if unable to find work.”

“It is simply wrong to expect young people to be able to live off 100 euro a week – to include rent, food, transport, and then be expected to live decently.”

European leaders have discussed the Youth Guarantee at every summit for the past year and a half, but the programme is still not operational. Taoiseach Enda Kenny said that last week’s summit was different because “there was a real focus on having the money available and having every country have its programme ready by the end of the year, and to start this effectively.”

The government has faced criticism for its handling of youth unemployment in recent weeks, for example with the recent Budget cuts to social welfare, which Joe O’Connor describes as an “insult”. “Opportunities are just not out there,” O’Connor said. “When times were good Ireland had one of the highest youth employment rates in the EU. Furthermore it is simply wrong to expect young people to be able to live off 100 euro a week – to include rent, food, transport, and then be expected to live decently.

“They are being asked to pay for a crisis not of their making. This will undoubtedly force many into emigration.

“The USI agrees that the place for a young person is in the workplace, education or training – however the government has yet to hold up its end of the bargain to ensure adequate funding is in place to resource this,” O’Connor continued.

Under the Youth Guarantee, no unemployed youth would be allowed to go longer than four months without a job offer or training.

In addition to the €6 billion allotted for the Youth Guarantee in the new EU budget, the European Investment Bank intends to finance businesses that hire young people to the tune of €6 billion annually. The European Social Fund will devote up to 70 per cent of its €10 billion annual budget to youth employment, bringing the total available to €40-45 billion over the next three years. However, substantial as that sounds, it is dwarfed by the more than €150 billion which youth unemployment is estimated to cost the EU annually.

Highlighting the scale of the crisis,  O’Connor said: “There are over 32 young people unemployed for every job vacancy advertised in Ireland. Over 700 people recently applied for one receptionist’s role at a swimming pool.”

Germany has the lowest rate of youth unemployment, at 7.7%.  Ireland looks set to follow the German model of tackling unemployment among young people by combining education with apprenticeships.

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