Youth Unemployment: A Structural Problem

July 6, 2022

The data on unemployment trends in Catalonia at the end of the first half of 2022 are, without a doubt, positive. Registered unemployment has thus decreased by 24.2% in the last twelve months. Currently, there are 338,081 people registered as unemployed with the Catalan Employment Service, the lowest figure since June 2008, just before the financial crisis. This data confirms the economic recovery process following the Covid-19 pandemic, despite the shocks from the Russian invasion of Ukraine and its effects on prices.

Figures concerning young people are also positive: unemployment among individuals under 25 has decreased by 38.6% over the last year. The number of young people registered as unemployed is 18,206.

But, can we be satisfied?

The decline in youth unemployment must be qualified, considering that the Government of Catalonia allocated 125 million euros in the first half of 2022 to subsidize over 7,000 contracts for young people under 30. Despite the short-term impact these contracts have had on reducing registered unemployment, the long-term impact of this measure will need to be evaluated once these subsidies expire.

The number of young people registered as unemployed also needs to be qualified, given that most unemployed young people do not receive benefits, in many cases have never worked, and do not go to the offices of the Catalan Employment Service to register their job applications. Thus, a significant portion of this youth unemployment is not included in official figures.

Above all, it is important to highlight that the youth unemployment rate in Catalonia, although lower than the national average, remains almost double that of the European Union. This gap has persisted steadily since 2008 and demonstrates that youth unemployment is a structural problem.

And what are the causes of this structural problem?

Some of the most relevant causes of structural youth unemployment are linked to the education system.

On the one hand, a large number of young people abandon their educational path and do not pursue vocational or university training, mortgaging their future and condemning themselves to a situation of job insecurity throughout their professional lives.

It is necessary to review teaching processes, especially in compulsory education, motivating all young people to make the most of their learning paths, guiding them to define their post-compulsory educational path based on their interests, skills, and the needs of the labor market, and offering specialized support to those with greater learning difficulties.

On the other hand, there is a significant mismatch between market demands and educational offerings. The vocational training offering is limited, as evidenced by the fact that in the last academic year, more than 10,000 students were unable to secure a place to pursue intermediate-level vocational training courses. Furthermore, vocational training and university study programs do not adapt to the needs of companies, as shown by the fact that many sectors, from hospitality to technology, cannot find the professional profiles they require.

It is necessary to review the post-compulsory education offerings, adapting qualifications and content to the needs of businesses. The best way to do this is by promoting dual training, not only in vocational training but also in university education. Dual training allows educational centers to gain first-hand knowledge of company needs, provides students with practical workplace learning to develop necessary skills, and enables companies to adapt the learning process to their specific requirements.

Let’s revolutionize the education system and help young people enter the labor market, achieve independence, and proudly declare I am what I want to be.

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