European Economics

European Economics Update

9 November, 2017

Youth unemployment still a drag on potential growth

The euro-zone’s youth unemployment rate remains worryingly high. To address this issue, this week’s Eurogroup meeting focused on plans to raise educational attainment, which is a very good place to start. But in the absence of bolder measures to address labour market inequalities in certain countries and to help young people to find more than temporary employment, we expect a generation of inexperienced and disillusioned workers to weigh on the region’s growth prospects over the medium term.

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