Youth unemployed

TCS Daily - The Kids Are Not Alright

Interesting article above on youth unemployment in Europe. An extract:

In the EU-15, the countries with the highest levels -- above 20 percent 00 are Greece, Italy, Sweden, France, Belgium and Finland. Indeed, it is generally acknowledged that France and Italy have serious economic problems. But Sweden and Finland might surprise some. (A new study by McKinsey shows that the real unemployment rate in Sweden is 15 percent -- three times what the government claims.)

Obviously, there is no "Nordic Model" when it comes to youth unemployment. In Denmark and Norway, the rate is 8-10 percent, whereas in Sweden and Finland it is 20-23 percent - the same level as in beleaguered France.

The numbers reflect real policy differences. In Denmark, there is the so-called flexicurity model, where the flexibility part is important when it comes to cutting youth unemployment. But in Sweden, the labor market is very regulated, unionized and collectivized, leading to high youth unemployment.

It all comes down to a divide between reforming and non-reforming countries, the latter clinging to a so-called European Social Model. That combination of a big state with high taxes on work, public monopolies and a regulated labor market simply prevents young people from working. And what kind of a social model is that?