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COVID-19 Crisis: How to Avoid a ‘Lost Generation’

Author

Listed:
  • Dennis Tamesberger

    (Kammer für Arbeiter und Angestellte)

  • Johann Bacher

    (Johannes Kepler University, Inst. f. Soziologie)

Abstract

The spread of the coronavirus has made economic conditions difficult in many economic areas and has led to skyrocketing youth unemployment in most European countries. On the basis of simple model calculations, we estimate the consequences of the COVID-19 shutdown on youth unemployment in the European Union for the year 2020. According to our estimations, youth unemployment will increase from 2.8 to 4.8 million. The youth unemployment rate will increase to 26%, and the number of young people not in education, employment and training (NEET) will increase from 4.7 to 6.7 million. Policymakers at the national and international level should react as quickly as possible and make great efforts to avoid these negative scenarios. We suggest the introduction of a new European Youth Guarantee to ensure fiscal relief for those countries that suffer the most economically. It should be financed jointly by the EU and the respective member states. We suggest a new formula-based co-financing model in order to guarantee solidarity between the member states.

Suggested Citation

  • Dennis Tamesberger & Johann Bacher, 2020. "COVID-19 Crisis: How to Avoid a ‘Lost Generation’," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(4), pages 232-238, July.
    • Handle: RePEc:spr:intere:v:55:y:2020:i:4:d:10.1007_s10272-020-0908-y
    DOI: 10.1007/s10272-020-0908-y
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    References listed on IDEAS

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    Cited by:

    1. Issehnane Sabina & Moulin Léonard, 2024. "In the Eye of the Storm: The Disrupted Career Paths of Young People in the Wake of COVID-19," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(2), pages 565-596, April.
    2. Sarah Wolf & Jonas Teitge & Jahel Mielke & Franziska Schütze & Carlo Jaeger, 2021. "The European Green Deal — More Than Climate Neutrality," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(2), pages 99-107, March.
    3. Giedrė Kvieskienė & Ilze Ivanova & Karmen Trasberg & Viktorija Stasytytė & Eglė Celiešienė, 2021. "Modelling of Social Policy and Initiatives under COVID-19: Rural NEET Youth Case Study," Social Sciences, MDPI, vol. 10(10), pages 1-16, October.
    4. Michael Grömling, 2021. "COVID-19 and the Growth Potential," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(1), pages 45-49, January.

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