Statistics can hardly ever translate the anguish that people out of work go through in their lives. The latest set of unemployment figures by the European Union’s statistical arm, Eurostat, present a depressing picture, especially in southern European countries where worsening economic conditions have provoked anger and street protests across many capitals.
According to the figures, more than 26 million people were out of work in the European Union in May. Of these, over 19 million were in the euro area.
As if these figures were not distressing enough, what particularly stands out is the number of young people on the dole, a staggering 5.5 million in the EU, of whom 3.6 million were in the euro area (the figures are for May, that is, before Croatia joined the EU).
Youth unemployment decreased by 53,000 in the EU but it shot up by 84,000 in the euro area.
The lowest rates were in Germany, Austria and the Netherlands and the highest in Greece, Spain, and Portugal.
The dramatic rise in youth unemployment, particularly as a result of the snowballing effects of the recession since the credit crunch, has finally spurred the EU to move ahead with its plan to fight the problem.
At their last summit, EU leaders agreed to spend €6 billion over the next two years to support job creation, training and apprenticeships for young people. The plan has been long in coming but it may now lead to a drop in the jobless rate if the authorities in the EU member countries act immediately by tapping into the money allocated for the running of special schemes.
Fortunately, Malta ranks among those in the lowest placing in the table of youth unemployment rates. Only Denmark, the Netherlands, Austria and Germany have better rates than us.
The rates in countries suffering the brunt of the economic difficulties are harrowing. Take Greece, for example, where the rate stands at 59.2 per cent. Spain’s rate is 56 per cent and Portugal’s 42 per cent. No wonder there is so much discontentment among the young in these countries.
However, apart from the anguish that the unemployed must be suffering, there is also an economic cost. One estimate puts the cost of youth unemployment at 1.2 per cent of gross domestic product (that is, economic output) in the EU, or €150 billion a year.
Although Malta’s rate is low compared with that faced by other countries, it should be brought down even further.
Back from the EU summit, Joseph Muscat said the money allocation earmarked for the youth assistance programme was reserved for countries having a youth unemployment rate of 25 per cent. Malta, therefore, does not qualify, but the Prime Minister said his Government planned to come up with its own scheme.
Deputy Prime Minister Louis Grech said last month that some €2 million had been allocated for the scheme, which would provide unemployed young people with jobs, training or education.
Apparently, some 350 young people will be benefiting in the first phase, though no details of the scheme have as yet been made public. Presumably, they will be announced in the Budget.
What is particularly striking is that, according to a Cabinet minister, the Employment and Training Corporation risks losing €17 million from the European Social Fund unless it becomes more efficient.
There is no question about it, the wheels of the administration, including those of government-owned agencies, such as the ETC, urgently need to be well oiled and fine-tuned.