GLOBALIZATION AND YOUTH EMPLOYMENT
Verda CANBEY OZGULER*
Anadolu University-Faculty of Economics and Administrative Sciences, Eskisehir /Turkey
Ahmet TATAR**
Provincial National Education Directorate of Eskisehir/Turkey
İlknur TATAR***
Dumlupinar University, Graduate School in Science and Engineering, Kütahya-Turkey.
Abstract
The human resources that a country possesses maintain its importance within the production
process, and in fact, in today’s knowledge-based economy, human capital accumulation has
become an even more important factor than in the past. Human capital has become the
cornerstone of knowledge-intensive societies. Measured in terms of education at the national
level, human capital also provides an impetus to economic growth. By employing qualified,
highly educated manpower, knowledge-intensive technology companies of our day obtain
an important competitive advantage (Madsen et al, 2003: 427). In this sense, in gaining
qualifications such as digital literacy, creative thinking, effective communications and high
productivity, young people have a greater advantage. Thus, in terms of countries with a
young population, raising the young people in accordance with the necessities of our era and
employing them within the production process according to their mentioned qualifications
beyond necessity is seen as compulsory. Should this not take place, this young and dynamic
population group will inevitably become the group that is most heavily burdened with all of
the negative impacts of unemployment.
For this reason, all countries that have grasped the importance of this matter have initiated
youth and youth employment policies. The basis of these policies rests in a series of
interrelated policy applications such as lifelong training-centred flexible training systems,
internship and career consulting applications within the framework of institutional
arrangements regarding transition from school to working life and legal arrangements.
In this study, the place of youth in the labour market and employment issues is examined
within the context of the globalisation process with examples from different countries.
Additionally, policies that need to be developed during this process are mentioned and
supported with concrete practical examples for developing recommendations, as well as
considering the subject from other perspectives.
Key Words: Globalisation, Youth Employment, Youth Unemployment
1. Introduction
While the changes experienced in labour market in recent years, reconstruction of economy
on a global scale, unemployment and underemployment, development of service industries
and spread of flexible working forms (styles) affect all individuals, youth are affected more
negatively than other groups. When considered from the perspective of the youth labours
that will step to the labour market for the first time, this issue becomes more important and
is worth analysing.
In all countries, youth employment is based on two basics. The first of these basics is an
education system that brings up skilled youth; the second is a labour market that creates
good businesses (OECD, 2008: ii). Preparation of the youth to labour markets has been one of
the principle aims of contemporary societies. The basic issue to be emphasized is the function
of education during transition from school to working life (Gündoğan, 2005: 105). Secondly,
the roles of entrepreneurship and creating business come into prominence.
During crisis periods, groups affected by fluctuations in the conjuncture and structural
properties of the markets are mostly the youth that are in one of the disadvantageous groups
in socio-political terms. Slowing and ceasing of employment during economical contraction
periods is among the main causes of this situation. In many developed and developing
countries, youth employment problems have a tendency to increase. While unemployment
takes the first place among these, a series of other significant problems such as
underemployment, unregistered employment and incompetence of job creation in the
economy also affects youth at the very beginning of working life (Kabaklarlı and Gür, 2011:
5).
According to the “Global Tendencies Concerning Youth Employment” report published by
International Labour Organization (ILO) in 2006, while the number of unemployed youth
between 15 and 24 for the past decade was 74 million in 1995, this number reached 85 million
in 2005, with an increase of 14.8%. More than 300 million young people, approximately 25%
of the world population, live below the poverty line of 2 USD/day. According to the findings
of the same report, 1/3 of the 1.1 million youths between ages 15 and 24 are looking for jobs
and are unable to find one or have given up looking for a job. Although there was a 13.2%
increase in youth population from 1995 to 2005, youth employment increased only 3.8%
during the same period and reached to 548 million. Nowadays, being employed in a job does
not guarantee sustainable economic opportunities in the future for the public; 56% of youth
work in irregular jobs below poverty line (Aslantepe, 2007: 53).
2. Employment of Youth
The most important factor to integrate youth with the public and to determine their social
status with their own will, skills and efforts is being able to employ them in real terms. When
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we say employment in real terms, we mean employment of individuals in a job suitable to
their physical and mental properties and to their wills. However, in most countries, even
being employed with any job is difficult (Sanal, 2010: 1).
In this part of the study; factors effective in youth employment, or in other words, factors
effective in beginning to work on a fee/salary basis, are discussed regarding firstly education,
secondly transition from school to working life and thirdly entrepreneurship and creating
business cases. During the globalization process, while employment of youth in the labour
market in paid employment (paid labour) is a preferred condition, in developed or
developing countries this process does not occur spontaneously and smoothly. Although the
level of graduation affects the difficulty level of transition to working life, it is not the sole
variable. Many other factors such as presence of institutions concerning transition, social and
cultural values and businesses created in labour markets and sectors in which they are
created are also effective.
Youth unemployment constitutes just a single part of the difficulties that youths encounter in
the labour market. Many young people are involuntarily underemployed in part-time and
temporary or low-efficient jobs (Seçer, 2006: 80)1. Youth unemployment is just one of the
youth’s problems. For solving youth employment and youth unemployment problems, an
education system proper to the labour market requirements, institutional arrangements
easing (smoothing) transition from school to working life, and active labour market policies
that consist of setting up one’s own business and entrepreneurship policies should be
applied. Applications such as analysing labour market in a good manner, dialogue between
social partners consisting of labour unions and employers and flexicurity are considered
among arrangements (regulations) that will increase the effectiveness of employment
policies devoted to youth (Seçer, 2006: 90).
2.1. Education as Human Capital Investment
Theories of social inequality in the 1950s through the 1970s placed the issue of school-to
work transition at the forefront of sociological research. Status attainment perspectives, for
example, systematically considered the degree to which individuals are rewarded
occupationally for their investments in education. In essence, this work addressed the
relative importance of ascription and achievement in shaping occupational status and
mobility. Proponents argued against the view that poverty is self-reproductive in a manner
beyond the control of the individual. Instead, and to some degree consistent with neoclassical economic assumptions regarding the acquisition of human capital, they emphasized
the ways in which inequalities of status, income and the like result largely from differences
in individual ability, skill and motivation. Schools, it is suggested, prepare students for
careers similar to those of their parents, thus recreating and legitimizing inequality.
Moreover, the educational system rewards students who demonstrate familiarity with
dominant cultural capital. This results in further disadvantages for poor, working-class and
minority students. The imbalance of opportunity inherent in this system is masked by a
hollow achievement ideology that encourages students to pursue educational success as a
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precursor to getting a high-paying job. This is despite the fact that such jobs are not
sufficiently plentiful to accommodate most individuals (Ainsworth ve Roscigno, 2005: 257).
Education, which is seen as the major source of human capital accumulation, generally
requires radical transformations in education systems within this period. For the education
system, accommodating to the changing needs of the labour market, arises as a requirement;
however, it is not sufficient. Human capital investment enhances expectations from
education and those who’ve invested for themselves, and especially youth seek to be
involved in the labour markets by finding jobs in fields compatible with their educations.
From this aspect, education evokes its key feature regarding both competitiveness and
employability in knowledge-based production and information society conditions with an
increasing proportion.
Education-employment relations have undergone an important change in time with the
transformation in manufacturing type and globalization. Nowadays, it may take various
forms such as lifelong learning.
The first step to awaken this potential is to increase the qualifications of youth labour
through education. Providing a lifelong and flexible education is important in order to gain
labour qualifications required by production processes which transform quickly and become
much more information-based with globalisation.
2.2. Transition from School to Working Life
In general terms, transition from school to working life indicates the period in which youth
experience their first job and encounter working life. When related studies in this area are
examined, the period between the end of the compulsory education and transition to
constant employment is dealed with as “transition process from school to working life.”
When evaluated from college graduates’ point of view, it is seen that their expectation levels
regarding labour market are higher than vocational high school/high school graduates
(Gerro ve Yaish, 2003: 572). Transition process from school to working life is used to express
a sophisticated/complex period without a beginning and end, that a young person meets the
labour market for the first time, evaluates her/his own abilities and qualifications and makes
the most realistic evaluation of the education she/he received. While getting over the
transition period in question substantially depends on looking for a job with an awareness of
qualifications, another important issue is the number and qualification of businesses created
in the economy. Increasing unemployment rates and changing working conditions affect the
youth, too. As a consequence of this, although to varying from countries to country, youth
unemployment rates have reached high levels in general.
In transition from school to working life, which has three bases including the youth, school
and employers; human capital level, signal effect of the degrees and network effect are
prominent issues. In this sense, keeping communication between schools and graduates via
graduate unions functions to strengthen signal effect. While the issue of transition from
school to working life appears in the literature in a form including vocational high schools, in
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this study, transition from school to working life concept is mainly discussed as transition to
working life after university education; in other words, transition to working forms in which
regular employment records are available.
Adaptation of the youth to the labour market is also another factor, serving as a basis for
transition from school to working life. Transition from school to working life appears as a
multidimensional and an important issue. Similarly, youth unemployment and “job/work
compatibility with human dignity”, “proper job/work” concepts are among prominent
topics.
While transition from school to working life was mainly examined regarding vocational high
school graduates until recently, in recent years, after vocation school, transition to working
life after university education attracts increasing attention. One of the main reasons for this
interest may be explained by the increasing tendency of youth to participate in working life
after vocational school (Richard ve Baum, 2002: 3).
Besides earning a wage, employment of youth is very important for socialising and taking a
good place in society. Even if she/he has been working during the education period,
transition to full-time employment after graduation is also evaluated within the frame of
transition from the school to working life issue (Mare; Winship ve Kubitschek, 1984: 327).
In labour markets, the process of finding a new job is important not only for the seeker, but
also for the policy makers and academicians. In recent years, especially discharging
individuals with higher education, high unemployment rates have increased the importance
given to this issue. Especially in the countries with high unemployment rates, policy makers
support educational programs via various legal regulations, in order to make individuals
meet their potential employers and employ them with jobs appropriate to their
qualifications.
The reason that companies fail to find labour suitable to their requirements may result from
inadequate information in the labour market, incompatible individual knowledge and skill
levels with labour market’s requirements or lack of development of optimal job seeking
strategy and companies’ unwillingness to provide occupational education for workers. In
education activities that include a significant cost, if the information gained via education is
oriented to bring skills to be used not only in that company, but in the whole market,
companies are reluctant to provide education costs. At this point, active labour market policy
tools such as occupational education, employment support and job-seeking support have
positive effects in terms of labour (Bergemann ve Berg, 2006: 9).
It is difficult to gain expertise required by the labour market, have sufficient information on
employment opportunities and get information on employment preferences in order to find
employment with a satisfactory wage and reach the carrier goals. At this point, labour
market agents have significant responsibilities (McEwen, 1978: 250).
Difficulties that youth experience during transition from school to working life are also
related to the activities that they perform during this period. During the time of
unemployment, being committed to activities that will prepare the individuals for constant
employment will be helpful for them to get through the transition process successfully
(Ryan, 2001: 37).
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2.3. Entrepreneurship and Creating Business
Entrepreneurship concepts originate from “entreprendre”. The term, meaning entrepreneur,
was coined by French Richard Cantillon. In 1755, Cantillon has defined this term as
generating income between economical variables and at conditions of uncertainty. In this
sense, entrepreneurship has transformed into the expression of innovative activities process
that causes changes in the economic system (Onay and Çavuşoğlu, 2010: 48)1.
Entrepreneurship is both a process that includes decision making and creating innovations
under uncertainty conditions by taking risks, and a multidimensional concept that expresses
the value that entrepreneurs create both for themselves and for the society.
Entrepreneur definitions have provided the entrepreneurship to conceptualise by combining
with Industrial Revolution developments. Traditionally, entrepreneurship is examined in
three phases: personal entrepreneurship, investor entrepreneurship and administrator
entrepreneurship. Today, paying attention to fast transformations regarding development
and commercializing advanced technology products, concepts such as technological
entrepreneurship, informatics entrepreneurship, e-entrepreneurship and technoentrepreneurship has become an issue (Erkan, 1997:178).
As entrepreneurship dimensions such as creativity, success, leadership and endurance to
uncertainties coincide with the youth’s openness to innovations and dynamism, when youth
in labour market is mentioned, entrepreneurship is usually regarded as the most suitable
orientation (Athayde, 2009: 482). Entrepreneurship is not a job, it is a kind of activity. It is the
process of creating business in cases of various uncertainties. There should be knowledge or
ideas for an effective production process. Upon examination of Table 1, in which authors’
definitions about entrepreneurship and aspects they highlight in enterprise are examined,
multidimensional and dynamical aspects of the concept are understood clearly.
Table 1. Entrepreneur According to Certain Writers
Emphasised Entrepreneurial Side
Assumed risk
Contributing financial resources
Innovator
Decision taker
Sector leader
Management and supervision
Organizing and coordinating
Authors
Cantillon, Cole, Hawley, Knight, Mill, Mises, San
Bernardino de Siena, Sanckle de Thtinen
Böhm-Bawerk, Mises, Pigou ve Smith
Bentham, Schmoller, Schumpeter, Shakle, Sombart,
Thtinen ve Weber
Cantillon, Cole, Keynes, Marshall, Menger, Mises,
Schultz, A. Walker, F. Walker ve Wieser
Marshall, Jenofonte, Saint-Simon, Say, Schumpeter,
Sombart, A. Walker, F. Walker, Weber ve Wieser,
Marshall, Menger, Mill ve Say
Marshall, Menger, Mill ve Say
Clark, Coase, Davenport, San Bernardino de Siena,
6
economic resources
Company owner
Use of production factors
Commerce
Resource distribution
Source: Galinda vd., 2009: 3
Say, Schumpeter, Sombart, Weber ve Wieser
Hawley, Pigou, Quesnay ve Wieser
Keynes, A. Walker, F. Walker ve Wieser
Bentham
Cantillon ve Schultz
Institutions such as United Nations Development Program (UNDP), ILO and World Bank
(WB) and United Nations Economical and Social Council (ECOSOC), which perform
investigations in socio-economical areas, prepare reports and make political suggestions,
emphasize that entrepreneurship regarding youth employment has an important place in
youth employment. It is emphasized that, if the youth entrepreneur is supported and she/he
actualises her/his creative ideas, then she/he has the potential to create business for the other
young individuals and the ones unable to find a job although she/he wants to work.
Moreover, the issue of creating business is not a target easily achieved. In EU example, the
aim of creating 22 million businesses in 2002 failed, and very few businesses could be
created, with just 0.6 million net businesses (Hatipoğlu, 2006: 39; Pirler, 2007: 151; UNDP,
2004: 12; ILO, 2012: 2; WB, 2010: 3; ECOSOC, 2012: 11). In this sense, young entrepreneurs
should be supported in education, tax, finance, technology, management (operation) and
marketing issues, and their development should be ensured. Amounts and limits of credits
for Small and Medium Sized Enterprises (SME) should be examined, and credits should be
varied and eased (Pirler, 2007: 151). While SMEs are important for entrepreneurship,
entrepreneurship is not limited to just SMEs (TÜSİAD, 1999: 9).
Moreover, entrepreneurship, as being one of the four axes on which the European Union
Employment Strategy (EES) depend, namely, increasing employability, developing
entrepreneurship, lifelong learning and equality of opportunity, has an important place
among the Union’s policies. During the second half of the 1990s, to deal with unemployment
at EU level, Europe Employment Strategy depending on a common action plan has been put
into practice. In all policy suggestions that serve as a base to European Employment Strategy,
such as Essen Strategy dated 1994, Luxemburg Strategy dated 1997, Lisbon Summit dated
2000, Barcelona Summit dated 2002 and Brussels Summit dated 2003, promoting
entrepreneurship appears as one of the principal bases.
Concerning entrepreneurship education, from base stage to the setting up and growing
stage, five different levels of education may be delivered. In Table 2 these stages are given. In
the education system, beginning from gaining basic skills, raising the youth’s awareness is
accepted as the key factor for overcoming employment problems.
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Table 2. Five Stages of Entrepreneurship Education
Job Training and Education
Stage 1
Stage 2
Job Experience
Stage 3
Stage 4
Stage 5
 Solve business
 Become self-
 Gain
prerequisite
basic skills
 Identify
entrepreneurship
competencies
entrepreneurship
competencies
 Understand
effectively
employed
 Learn
 Discover
problems
 Apply specific
occupational
 Develop policies
 Expand existing
business
and procedures
for a new or
existing
business
training
problems of
employers
career option
 Learn how to
create new
business
 Understand
economics
and free
enterprise
COMPETENCY
BASICS
AWARENESS
CREATIVE
APPLICATIONS
STARTUP
GROWTH
Source: Youth, 2008: 38.
3. Youth Employment in European Union (EU) Countries
As an obstacle to youth employment, there are problems such as education, economical
growth, making regulations of labour markets and inadequacy of active employment
policies, which require regulations at the macro level.
Contemporarily, governments of many EU countries apply various precautions in order to
promote employers to contribute to the youth’s education and employment, in line with the
union’s policy towards decreasing young unemployment. These precautions are in the form
of financial incentives, subsidies, tax reductions or contributions to social security premiums
or wage expenditures.
In policies being applied for the youth, increasing employability is determined as the main
aim. Via precautions including usage of new technologies, enhancing skills and active
employment policy regarding coherence (compliance) with business markets, it is aimed to
8
struggle with youth employment that is experienced densely in EU level. In projects applied
for the youth, education, especially bringing skills compatible with the business with
occupational education, is the case. There are successful country cases in which education
projects are performed based on e-learning method. It is being observed that e-learning
strategies, which are the case for all age groups, give more positive results for the 20 to 29
age group, in which computer and Internet usage density is at its highest.
In Table 3, cases from the studies performed in EU countries for youth employment are
summarised.
Table 2. Youth Employment Policies and Practices in EU Countries
Countries
Belgium
France
Germany
Italy
Luxembourg
Policies Applied
“Rosetta Plan” which was put into practice in 1999 in order to solve
youth unemployment problem, foresees the employers to allocate 3% of
quota for the youth, within the scope of “First Job Agreement”. Social
Insurance Premium reductions are applied to employers that employ
low-qualified youth, as a part of “Generation Agreement”, which was
signed in 2005.
Besides “New Services New Businesses” program dated 1999 and
“TRACE-TRajet d'ACchs ` l'Emploi” program that aims to protect the
youth from social exclusion risk, by shortening working hours and with
new employment regulations, it is aimed to prevent youth
unemployment. The government prepared a “Youth in Business
Agreement” in 2002. With state aid (assistance), tax reductions have been
made to the institutions that employ low-qualification-level youth.
However, as the plan has been useful primarily for youth with high
qualification levels, it was renewed in 2005 in order to promote youth
with low qualification levels much more.
The “JUMP” project, which was first practiced in 1999, aims to increase
the youth’s employability. In Germany, employer organisations signed a
national education agreement with Ministry of Economy and Labour,
Ministry of Education and Investigation and Federal Labour Agency in
2004. Employers promised to provide a 30,000 apprentice quota and
provide a skills education quota at the introduction level for 25,000
persons each year, until 2006. In September of 2005, it was stated that the
number of interns (trainees) seeking training increased significantly
compared to the previous year.
Combining youth employment funds has been the case. Italy provides tax
reductions and social support reductions to businesses that employ
disadvantaged people. Employers that generate part-time employment
and employers that include education in their agreements benefit from
these promotions. Moreover, there are special promotions for the areas
that respond to the employment needs of youth between the ages of 15 to
24.
Under the reform of VET in Luxembourg, a total of 118 tailor-made
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Netherlands
Denmark
Ireland
England
Greece
training schemes were reviewed, adapted and reformed, so that students
now can obtain three types of competence-based diplomas: the certificat
de capacité professionnelle, CCP (certificate of professional competence),
the diplôme d’aptitude professionnelle, DAP (Professional qualification
diploma) and the diplôme de technicien, DT (technician diploma). The
design of the diplomas is in line with the strategy to combine a new form
of skills acquisition, based on competences, with a focus on practical
training so as to increase the employability of students while similarly
forging contacts with the business community insofar as teaching
schemes are modelled in close partnership with businesses of the
involved sectors.
In Netherlands, Information Centers are aimed at the youth and their
parents for training and training places. There are financial promotions
for the employers that provide training places. An employer that employs
an unqualified person is paid 1500 Euro, as long as the employer
guarantees education (training). “Youth Model” gives a job guarantee
while it prepares the unemployed youth for the training place.
Campaigns are organised in order to encourage small- and medium-sized
organisations to employ new graduates, and employers are granted wage
subsidies.
In Ireland, until recently there was little difference between young and
older persons with regard to eligibility for unemployment payments.
However, since May 2009 ‘Jobseeker allowance’ (JA) payments for
persons aged 18 to 24 years old have been substantially reduced. The
decreases, which apply to new jobseekers, are of the order of 50% for
those aged 18 to 21 and somewhat less than that for young people aged
22 to 24. However, these reductions do not apply to those who avail of
training/education programmes.
With the “New Deal for Young People” program, the target in the
struggle with youth unemployment is to increase the skill levels of youth
through lifelong learning and university-industry collaboration. In
regions where there is high unemployment a new job subsidiary program
is being applied in having youth and job seekers employed in local
administrations and other public authorities.
Greece has a subsidy program for the young unemployed. The Program
is aimed at youth up to 30 years of age. Various subsidies are provided to
firms that employ youth for 21 months. Employers are obligated to
employ the youth for a minimum three months subsequent to the end of
the subsidy. Evaluations conducted relating to the subsidiary program
have shown that 46% of the participants have continued to work with the
same employer after the subsidy program comes to an end. Another
policy measure applied in Greece is the personnel placement program in
private and public sector enterprises. The program in the private sector
aims at providing assistance in gaining work experience for 5,000
unemployed youth under the age of 30. Many of the job positions have
been reserved for young unemployed women. Minimum employment
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Portugal
Spain
Austria
Finland
Sweden
Cyprus
Czech Republic
Estonia
duration is six months, and employers receive a subsidy.
It is foreseen that employers that employ long-time unemployeds or the
youth (up to age 35) for full time or constant jobs are exempted from
social security premium payments and gain promoting employment
payments. In Portugal, there is a variety of promotions for businesses
including social security exemptions and wage subsidies for employing
unemployed youth. In new training programs (‘Inov- Jovem’ and ‘InovTeması’) there are subsidies for employing high-grade young employees
ith low costs.
In Spain, “Developing Employment and Growth Agreement,” which was
signed between parties on 9 May 2006, includes precautions to increase
youth employment, too. According to the agreement, employers that
employ youth between the ages of 16 to 30 under a contract for an
indefinite period make use of an 800 Euro/month social security premium
discount for four years.
As a part of the training system reform, employers receive a subsidy for
employing more trainees and apprentices.
In Finland at the age of 17 jobseekers are entitled to unemployment
benefits if participating in labour market measures such as work
experience, labour market training or rehabilitation organised by the
employment authorities. Jobseekers aged 18 to 24 are eligible for labour
market support if they have not refused to participate in activation
measures and providing that they have applied for vocational training.
Young jobseekers who are over 25 years old are also allowed to study
while still receiving unemployment benefits for up to two years.
In Sweden, in the wake of the global economic crisis the situation of
young people in the Swedish labour market has deteriorated rapidly and
youth unemployment reached its highest post-war level in 2009.
The crisis appears to have had a greater impact on skilled young people
than on the low skilled. This could be attributed to the tendency of young
people to follow tertiary education and the fact that some foreign
unskilled workers returned home as the recession arrived in Cyprus,
releasing pressure on Cypriot low-skilled workers.
In the Czech Republic, a European Social Fund (ESF) project introduced
in 2009 in the region Ústí nad Labem provides subsidies to employers
who employ a recent school graduate, as well as offering language and IT
courses and other types of retraining. The goal of the project is to support
around 1,300 low-skilled young people to establish good work habits and
to find suitable employment in the region.
Labour Market Services and Rights Code that was accepted in 2006
foresees several plans that aim at unemployed people who are restricted
for their lack of experience. Many young people fall into this category.
Private sector and public sector employers will supervise the youth
participating in this plan, and in return, they will receive financial
promotions. Trainings may be up to four months and are restricted to
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Hungary
Latvia
Lithuania
Malta
Poland
Slovakia
eight hours/day and 40 hours/week
In Hungary, legal changes performed in 2005 aim to decrease the tax
burden, to increase the employment opportunities of the newcomers to
the labour market. Employers that employ newcomers to the labour
market who are younger than 25 years old and haven’t worked
previously will receive tax reduction for two years. If the employer
employs the newcomer proper to her/his qualifications, the state pays 50
to 100% of her/his salary for a maximum of 360 days. If the employer
employs a person who has been trained in that company, the employer
may receive a subsidy up to the half of the minimum wage.
In Latvia, the youth unemployment rate rose sharply in 2008 and 2009.
The increase was most significant for the younger, less qualified groups
of young people: 15- to 19-year-olds and 20- to 24-year-olds. This could
be attributed to the collapse of many sectors which in the boom years
offered relatively high salaries to young people for low-skilled work—
notably, in construction and retail.
A new measure was introduced in the first quarter of 2010 to exempt
employers partly from social insurance contributions (around 80% of the
established rate) when offering a young person their first job. This tax
privilege is expected to continue until July 2012. It is intended to
contribute to better tackling youth unemployment problems, promoting
the employment of new graduates without the necessary work
experience and, at the same time, reducing emigration and ‘brain drain’.
Malta’s PES, the Employment and Training Corporation, offers a variety
of schemes to facilitate the school-to-work transition of young people
such as the ‘Job Experience scheme’, which provides young persons with
13 weeks of job experience while being paid an allowance. More than 830
persons benefited from this scheme between its introduction in 2003 and
2008. Another offer is the ‘Active youth scheme’, which provides the
opportunity for young people who have been registered unemployed for
six months or more to work for a maximum of six months with an NGO.
This scheme was used by more than 220 persons between its introduction
in 2006 and 2008.
In Poland internships of up to 12 months are offered by the local labour
office to young unemployed persons up to 25 years old and to
unemployed university graduates up to 27 years old. The beneficiary
receives the equivalent of 120% of unemployment benefits during the
internship.
Within the Slovakian ALMP scheme, there is one special programme for
young jobseekers entitled ‘Work Experience for school leavers’ (referred
to as ‘graduate practice’) that aims to provide young people aged up to 25
with the opportunity to acquire and improve professional skills and
practical experience with a specific employer. In 2008, the monthly sum
granted to participants in graduate practice was raised from EUR 63 to
minimum subsistence level (currently EUR 185). Available assessments
show that about 8% of persons involved in graduate practice eventually
12
find a regular job.
‘Project learning for young adults’ (PUM) is a Slovenian programme
aimed at unemployed school drop-outs under the age of 26. The
programme tries to encourage young people who have no qualifications,
occupation or employment to overcome social isolation and return to
Slovenia
education or, where this is not possible, to promote the acquisition of
skills that make the transition to work easier. With the help of mentors,
young people address the problems that contributed to their dropping
out of school. In 2009 there were 297 young persons involved in this
programme, which is considered to be relatively successful.
In Bulgaria, the ‘Youth work experience’ programme offers a grant to
employers to hire young people with secondary and higher education
who have not found employment after graduation. The period of
Bulgaria
probation is six months or less. The grant is paid for trainees’ salaries
(BGN 300/ EUR 150 per month) and for additional remuneration of the
coaches involved (a sum equal to half of the minimum wage).
In Romania, there are employment subsidies to employers for employing
young graduates. Unemployment Insurance Code, which was accepted in
2002, focuses on the youth between ages of 15 and 24 and aims to increase
Romania
their employability via active labour market programs. There are
subsidies for employers that employ new graduates, disadvantaged
youth or youth who have completed military service
Source: Canbey - Özgüler, 2006: 62-67; Pirler, 2007: 150-153; TİSK, 2009: 22-29; EC, 2010: 1525
4. Youth Employment in Turkey
The unemployment and employment problem began to appear in Turkey’s agenda in the
1950s. Unemployment has increased with a rapid population increase, and it maintains the
high level that it reached in 1970s (Oğuzlar, 2007: 103).
According to the definition used by TÜİK, among the persons unemployed during the
period that the “Household Labour Survey” is conducted, individuals who have used at
least one of the job-seeking channels in the past three months is accepted as unemployed. In
line with this, youth unemployment is related to individuals between the ages of 15 and 24
aren’t employed and are seeking a job.
In Turkey, according to Turkish Statistical Institute (TÜİK) data, the unemployment rate of
youth ages 15 to 24 18.1% in 2011. The same rate is stated to be 21.6% for 2010 (TÜİK, 2012:
1). By referring to this number, it may be said that youth unemployment has decreased.
However, in Turkey, dimensions of youth unemployment are so complex that it cannot be
discussed over unemployment rate, such as all over the world. In terms of Turkey, the
complexity of the youth unemployment problem is indeed not different from other young
individuals’ condition all over the world. In a general sense, in developed countries, youth
13
unemployment seems to be an important issue among other employment problems. Policies
seek to solve the complex structure of youth unemployment. Each country tries to perform
many applications such as education, entrepreneurship, flexicurity and career consultancy in
order to integrate youth labour to the production processes actively and effectively, which
youth see as the most valuable human resource.
In Turkey, education system has been insufficient to supply the labour market’s needs. Also,
unemployment rates of educated individuals could not be decreased significantly. New
mechanisms that will respond to economies and labour market’s demands and that will
especially increase youth’s employability are needed. Within the scope of relieving education
programs, in the Ninth Plan Period, studies for switching to modular system was started
with the aim of making vocational education flexible for responding to developments in
labour market (DPT, 2007: 39). It is being tried to make the labour markets more flexible and
dynamic by evaluating flexibility and assurance together. There are many reports and
studies regarding establishing effects of supplying a strong connection between education
system and labour market in Turkey, on youth to develop opportunities while transition
from school to working life (UNDP, 2008). In the report in question, it is advised that, second
chance programs, effective career consultancy, job seeking assistance and flexicurity cases
should be accomplished for the youth (Belen, 2008: 3). Turkey’s strong economical growth in
the last period hasn’t brought an employment increase parallel to this growth (Yeldan ve
Ercan, 2011: 2).
In Turkey the advantage of the young population can not be benefited properly. According
to 2008 data, the employment rate in the active population is 42%. In other words, among 100
individuals in the active population, 42 of them are productive. The same rate is 30% for the
young population. When the results and data of the studies performed in this area are
examined, among the youth, which is one of the disadvanteged groups in socio-political
terms, it is seen that females are more disadvantaged (Canbey - Özgüler, 2007: 68). Young
females experience more difficulties than young males while looking for a job, and they are
excluded from labour markets. In the studies about disadvanteged groups, there may be
confusion while deciding about the group in which individuals will be included. For
example, the difficulties that a young disabled female experiences in labour markets cannot
be exhibited clearly, while disadvanteged groups are classified as youngs, females, olds and
disableds. While there are extensive policies for youth and youth employment in Turkey,
“Reinforcing Employment and Vocational Education Relation Action Plan”, which became
valid by being published in a 15.07.2010-dated official journal, is a sign of the importance
attached to youth employment. The action in question has defined nine priority areas. These
are:

Forming National Sufficiency Frame.

Harmonizing education programmes in line with national profession standards.

Performing periodical analyses for the needs of labour market.

Enhancing vocational and technical education environments,
qualifications of trainers and designing a new school managing system.

Accreditation of vocational education institutions.
14
increasing

Cooperation for application of the tools developed by EU for mobility, qualification
and vocational education.

Increasing the effectiveness of labour training classes.

Establishing necessary promotion mechanisms for employing and entrepreneurship
of Vocational and Technical Education Graduates and Vocational Proficiency
Certificate owners.

Developing cooperation in vocational information (knowledge), guidance and
consultancy services.
When these priorities are examined, it is seen that, if they are applied, they establish an
extensive map for youth employment proper to their qualifications in the labour market.
5. Conclusion
Today, the increasing frequency of economical crises affects macroeconomic balances in
many developed and developing countries, and the social problems caused by this increase
gradually. Unemployment, which is among the most important of these problems, affects
socio-politically disadvanteged groups such as females, the youth, olds and disableds.
Among these groups, youth employment becomes an important investigation area. The most
important factor for youth to integrate with the society and determining their social status
with their own will, skills and efforts is their employment in real terms. Employment in real
terms refers to employment of individuals in a job suited to their physical and mental
properties and desire. However, in many countries, for the youth, even to be employed in
any job is difficult. Youth, which is an important human resource for the countries, and of
which effective usage during the production process brings competitive advantage, should
be donated with skills in accordance with the era’s requirements. For this reason, education
policies are one of the important dimensions of youth employment. The transition to the
labour market after education and the beginning of paid/waged labour is another process.
While not thought apart from education, in this process which is called “transition from
school to working life”, institutional cooperation and policies that will be provided with the
participation of social parties together, directly affects the transition’s success. While the
graduation level affects the difficulty level of the transition to working life, it is not the only
effective variable in this issue. Many factors such as presence of institutions related to
transition, social and cultural values, businesses created in labour market and in which
sectors they are created, are important.
Unemployment among youth refers to just a portion of the difficulties that youth encounter
in labour market. Many young individuals are employed in part-time or low-efficient jobs
involuntarily.
Entrepreneurship is another path presented to youth for transition to working life; as the
qualifications that young individuals possess such as dynamism, being able to take risk and
15
openness to innovation coincides with the dimensions of entrepreneurship such as creativity,
success, leadership and endurance to uncertainties, the issue of encouraging the youth for
being successful entrepreneurs is important. Today, in many developed and developing
countries, the aim is to position youth in good places in the labour market and integrate
them with their society via policies that struggle to address youth unemployment.
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