Even under optimistic growth scenarios it will take years to significantly reduce unemployment across the region, it says.
The burden of the crisis is shared very unequally across generations. With youth unemployment rates of more than 50% in Greece and Spain, and around 40% in Italy and Portugal, the euro area periphery faces a ‘lost generation’ encountering unusually adverse labour market conditions.
Youth unemployment among the under 25s has received the bulk of attention, but those aged between 25 and 34 in the prime labour market population have also experienced disproportionate employment losses.
In addition, long-term unemployment is becoming increasingly prevalent across younger groups.
The most affected countries have started to introduce measures to create jobs and improve the transition from education to work. These need to be complemented by effective activation policies not only aimed at the under 25s, but also at groups in the prime labour market age, the report says.
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