Shocks and institutions have piled employment adjustment pressures especially on the young, and youth unemployment has risen to record levels. If youth unemployment remains persistently high, the risk of structural unemployment (and exclusion) increases, because nothing converts cyclical unemployment to structural unemployment more efficiently than prolonged spells of unemployment.
The relocation of the unemployed youth to new jobs is a pressing issue The relocation of the unemployed youth to new jobs is a pressing issue, as prolonged unemployment at the start of the working career has substantial long term costs for both individuals and society as a whole. Labour market institutions and policies should take this challenge seriously.