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Europe takes steps to tackle youth unemployment Europe takes steps to tackle youth unemployment
(3 months later)
Figures released on Monday show eurozone unemployment levels at record highs. Governments across the continent have been scrambling to come up with measures to tackle the crisis.Figures released on Monday show eurozone unemployment levels at record highs. Governments across the continent have been scrambling to come up with measures to tackle the crisis.
France
France
Youth unemployment in France is above 26%, more than double the national rate. On deprived urban estates and in certain rural areas, youth unemployment tops 40%. The problem is compounded by the failing education system: more than 120,000 youths leave school each year with no qualifications. Restoring hope to France's desperate, unemployed youth was the central promise of François Hollande's presidential campaign.Youth unemployment in France is above 26%, more than double the national rate. On deprived urban estates and in certain rural areas, youth unemployment tops 40%. The problem is compounded by the failing education system: more than 120,000 youths leave school each year with no qualifications. Restoring hope to France's desperate, unemployed youth was the central promise of François Hollande's presidential campaign.
Hollande's first measure was to create state-aided jobs for young people. A subsidised employment scheme called Jobs for the Future aims to create 100,000 jobs this year, rising to 150,000 next year, targeted at people between 16 and 25 who have no qualifications and are from urban or rural areas badly hit by unemployment. The state will pay 75% of the young person's gross wage for three years. The jobs will be mostly in the public service and non-commercial sector, principally linked to local authorities as well as the voluntary sector, transport and education. The initial cost this year and next is €2.3bn (£2bn). The scheme will be extended to a fewer number of jobs in the commercial sector, subsidised at a lower rate. Critics on the right and some in business have said the "make-work" scheme might not lead to long-term contracts and is taking too long – so far 33,000 of the contracts have been signed this year.Hollande's first measure was to create state-aided jobs for young people. A subsidised employment scheme called Jobs for the Future aims to create 100,000 jobs this year, rising to 150,000 next year, targeted at people between 16 and 25 who have no qualifications and are from urban or rural areas badly hit by unemployment. The state will pay 75% of the young person's gross wage for three years. The jobs will be mostly in the public service and non-commercial sector, principally linked to local authorities as well as the voluntary sector, transport and education. The initial cost this year and next is €2.3bn (£2bn). The scheme will be extended to a fewer number of jobs in the commercial sector, subsidised at a lower rate. Critics on the right and some in business have said the "make-work" scheme might not lead to long-term contracts and is taking too long – so far 33,000 of the contracts have been signed this year.
Hollande has also introduced "generation contracts" in which state financial aid is given to companies with fewer than 300 employees if they give a permanent contract to someone under 26 while at the same time keeping on an employee aged over 57.Hollande has also introduced "generation contracts" in which state financial aid is given to companies with fewer than 300 employees if they give a permanent contract to someone under 26 while at the same time keeping on an employee aged over 57.
Spain
Spain
Prime minister Mariano Rajoy's People's party has not taken steps to create jobs directly, but says new labour laws and EU-inspired austerity measures will reduce unemployment, which has risen steadily since mid-2011.Prime minister Mariano Rajoy's People's party has not taken steps to create jobs directly, but says new labour laws and EU-inspired austerity measures will reduce unemployment, which has risen steadily since mid-2011.
In February last year, a labour reform bill proposed to make it easier for employers to take on workers by ending a legal divide between temporary and permanent contracts. The law also reduced compensation for unfair dismissal, which led unions and opposition parties to object that it would aggravate unemployment by making it cheaper for employers to sack workers.In February last year, a labour reform bill proposed to make it easier for employers to take on workers by ending a legal divide between temporary and permanent contracts. The law also reduced compensation for unfair dismissal, which led unions and opposition parties to object that it would aggravate unemployment by making it cheaper for employers to sack workers.
A year later, Rajoy unveiled plans to allow small companies to defer VAT payments and tap government credit lines to create jobs. This spring, the European Central Bank urged the government to remove the minimum wage. Last month, the International Monetary Fund urged Spain to do more to create jobs, but the government said there would be no more legislation.A year later, Rajoy unveiled plans to allow small companies to defer VAT payments and tap government credit lines to create jobs. This spring, the European Central Bank urged the government to remove the minimum wage. Last month, the International Monetary Fund urged Spain to do more to create jobs, but the government said there would be no more legislation.
Italy
Italy
Last week, the government of Enrico Letta approved measures to tackle youth unemployment, currently at about 40%. Letta announced tax breaks for employers who hire under-30s on permanent contracts. The package also included measures to stimulate training, apprenticeship and internship schemes. Most of the €1.5bn effort – a mixture of national and European structural funds – will be focused on the south of Italy.Last week, the government of Enrico Letta approved measures to tackle youth unemployment, currently at about 40%. Letta announced tax breaks for employers who hire under-30s on permanent contracts. The package also included measures to stimulate training, apprenticeship and internship schemes. Most of the €1.5bn effort – a mixture of national and European structural funds – will be focused on the south of Italy.
Germany
Germany
Germany has relatively low youth unemployment, but Angela Merkel has convened a summit for Wednesday to seek greater action on what is arguably Europe's most pressing political problem.Germany has relatively low youth unemployment, but Angela Merkel has convened a summit for Wednesday to seek greater action on what is arguably Europe's most pressing political problem.
EU
EU
EU leaders came up with a $6bn plan to combat youth unemployment at a summit last week, principally through diverting money from the EU budget towards regions where youth unemployment is more than 25%. In addition, the European Investment Bank will borrow on the markets to increase lending to small businesses in an attempt to bypass the credit crunch and encourage the hiring of school-leavers.EU leaders came up with a $6bn plan to combat youth unemployment at a summit last week, principally through diverting money from the EU budget towards regions where youth unemployment is more than 25%. In addition, the European Investment Bank will borrow on the markets to increase lending to small businesses in an attempt to bypass the credit crunch and encourage the hiring of school-leavers.
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