Unemployment, Homelessness, and Debt: The Plight of the Young
“Unemployment sucks. Youth unemployment sucks even more”
It is not a good time to be young. Our youth are bearing the brunt of the economic depression and its self-defeating solution of austerity and cuts. The future to them looks bleak; unemployment, debt and homelessness in various combinations, or all three beckon. Of course these three scourges (unemployment-debt-homelessness) are linked.
Youth unemployment (16-24 years old) is now 20.7 % in the UK. The average across the EU is 22.4%, with Greece and Spain leading the misery index at 52.8 % and 52.7 % respectively.
A report entitled “Youth unemployment: the crisis we cannot afford” produced by ACEVO (Association of Chief Executive of Voluntary Organizations) puts the human cost thus:
“Unemployment hurts at any age; but for young people, long-term unemployment scars for life. It means lower earnings, more unemployment, [and] more ill health later in life. It means more inequality between rich and poor – because the pain hits the most disadvantaged.”
The report quantifies the financial cost as follows:
“The human misery of youth unemployment is also a time-bomb under the nation’s finances. At its current rates, in 2012 youth unemployment will cost the [British] exchequer £4.8 billion (more than the budget for further education for 16-to-19-year-olds in England) and cost the economy £10.7 billion in lost output. But the costs are not just temporary. The scarring effects of youth unemployment at its current levels will ratchet up further future costs of £2.9 billion per year for the exchequer (equivalent to the entire annual budget for Jobcentre Plus) and £6.3 billion p.a. for the economy in lost output. The net present value of the cost to the Treasury, even looking only a decade ahead, is approximately £28 billion.”