A waitress serves pasta in a restaurant in Milan, Italy, on June 8.Luca Bruno/The Associated Press
In the early 2010s, young people frequently hit the streets of Athens, Madrid and other European capitals to protest the bleak economic conditions that were crushing their career prospects.
At peak levels in 2013, youth unemployment rates soared above 50 per cent in Greece and Spain, with Italy not far behind. Those countries were slammed by the double whammy of a global recession and subsequent debt troubles, forcing them into harsh austerity measures to get their fiscal houses in order.
Many economists warned of a lost generation and the scarring effects of extended joblessness. Policy makers responded with billions of euros in support measures to hopefully alleviate the problem.
But a decade later, the situation bears little resemblance to the crisis era. The youth unemployment rate (for people under age 25) in the European Union has tumbled to 13.9 per cent as of July, Eurostat reported on Thursday. That’s not only down from a high of roughly 25 per cent in 2013, but it matches a record low.
When everyone under 30 is accounted for, the unemployment rate was a mere 6.3 per cent last year.
This is “super low,” said Jale Tosun, a professor of political science at Heidelberg University in Germany. And because of this shift, youth unemployment is “not such a hot topic anymore.”
At the height of the crisis in 2013, the EU introduced the Youth Guarantee, which sought to offer young people a job, education or training within four months of them leaving school or becoming unemployed.
Despite its lofty ambitions, the policy has drawn mixed reviews from academics. While it’s credited for helping millions of youth get training, researchers tend to find it had little impact on employment.
Instead, young people benefited from a turn in the business cycle. After years of stasis, the European economy started to grow again, helped by the stimulative effect of rock-bottom interest rates. With so many workers available, employers were able to hire people at affordable wages. Also, some of the unemployed left struggling Mediterranean economies for countries with stronger labour demand.
Later on, job vacancies rose sharply over 2021 and 2022, much like they did in North America, as companies tried to satisfy robust consumer demand.
Today, the labour market is historically tight. The EU’s unemployment rate – 5.9 per cent – is as low as ever. And that’s helping to create opportunities for job seekers, regardless of age.
“A rising tide lifts all boats,” said Daniel Gros, director of the Institute for European Policymaking at Bocconi University in Milan. “There was a strong increase in overall employment and that trickles down to everybody.”
Pawel Adrjan, director of research for Europe at the hiring site Indeed, offers another explanation for the recovery: “I think it’s really the end of spending constraints and austerity that helped fuel the labour market boom,” he said.
Despite these improvements, economists say the situation isn’t entirely upbeat. Much like before, there is wide variation in labour outcomes by country. While the likes of Germany and the Netherlands enjoy youth unemployment rates in the single digits, rates remain well above 20 per cent in Spain, Italy and Greece.
In some parts of those countries, job opportunities are virtually barren. The youth unemployment rate in the Campania region of Italy – home to Naples and the picturesque Amalfi coast – is greater than 40 per cent.
Tasos Patmazoglou, a 27-year-old in Athens, is planning to move to Sweden after completing his engineering degree later this year. Leaving Greece is still a common decision among the young and educated, he said.
“What they do is get a degree here in Greece, then do a master’s abroad and then stay abroad and work,” he explained.
Across southern Europe, a large proportion of young people work in temporary positions and struggle to establish a career. These individuals, who frequently switch jobs, are “getting stuck in lower-paying jobs,” said Dr. Adrjan.
Spain is trying to disrupt that trend. Late in 2021, the Spanish government overhauled its labour rules to restrict employers’ use of temporary contracts. Subsequently, there’s been a surge of youth in permanent roles.
Dr. Tosun said a lingering issue is the prevalence of NEETs – people not in employment, education or training. Across the EU, around 12 per cent of those aged 15 to 29 were NEETs in 2022, a proportion that has drifted lower in recent years.
It’s a particular problem in Italy, however. Nearly one-fifth of Italians under 30 were NEETs, lagging behind only Romania on the continent. Italy is beset by some of the lowest employment rates for recent graduates in Europe. This points to a mismatch between the skills employers want and those acquired in Italian schools, Dr. Adrjan said.
Transition rates from school to employment are much higher in other European countries. Germany, for instance, is famed for its apprenticeship system, which combines classroom learning with on-the-job training.
Back in Greece, it’s easier to land a job these days. However, “the working conditions are not good enough, and this includes salaries,” said Mr. Patmazoglou, who’s worked a variety of roles, including in cafés and warehouses.
Mr. Patmazoglou expects to find better pay, and a healthier work-life balance, in Sweden.
“I feel people think Greece is over the crisis,” he said. “The crisis is still going on. It’s not finished.”