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YOUTH UNEMPLOYMENT

Number of young Swedes in ‘early retirement’ soars

Since the centre-right Alliance coalition first took power in Sweden more than four years ago, the number of young people receiving disability pension payments has increased by nearly 50 percent, which the social security minister called a "political catastrophe."

Young people who end up taking the benefits include those who attend special schools for the mentally disabled or require several extra years to complete upper secondary school and receive special compensation instead of student loans, newspaper Svenska Dagbladet (SvD) reported on Wednesday.

Social Security Minister Ulf Kristersson pointed out that a number of these individuals leave the labour market with relatively unclear psychiatric diagnoses instead of receiving help from employers.

He added that the solution to their mental illness cannot be that they will never work, calling it “inhumane,” according to the report.

Even at the end of 2006, Prime Minister Fredrik Reinfeldt lamented the large number of young people who were ‘retiring’ from the workforce and instead receiving sick or disability benefits.

“It is clear that it is not good. It must be very odd for those who are 25 years old and are told that ‘as we see it, you have clearly worked,'” he told news agency TT at the time.

That year, 4,500 young people under 30 years old took what were then termed “early retirement” benefits (förtidspension).

By last year, the number had risen to 6,700, according to preliminary statistics from the Swedish Social Insurance Agency (Försäkringskassan).

The ruling Alliance coalition is now expressing its dismay at the high number in even stronger terms.

“We cannot continue to put young people on disability benefits who will never come off of them, it is unfair. It is a political catastrophe,” Kristersson told SvD on Tuesday.

He emphasised that it is not about “forcing someone into the labour market.”

“This will be done carefully,” he promised.

However, the minister’s goal remained clear.

“I want to bring down the number of new young people taking on disability pensions by a couple thousand a year. It will be one of my biggest political challenges,” Kristersson told SvD.

Kristersson has pledged to reduce the number of young people receiving the benefits by one-third this year, according to SvD.

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ITALY

EU heavyweights tackle youth jobless crisis

Spain, Italy, France and Germany sent their economy and labour ministers to Rome on Friday to look at ways to bring down the high levels of youth unemployment blighting the lives of millions across Europe.

EU heavyweights tackle youth jobless crisis
Some 53.3% of Spain's young people are unemployed as a result of the economic crisis, according to Eurostat. Photo: Dominique Faget/AFP

The emergency talks in the Italian capital come at a time when Spain's youth unemployment is over 50 percent.

French Labour Minister Michel Sapin said in an interview with Italy's Il Sole 24 daily on Friday that "in every country, even those where the unemployment rate is lower such as Germany, the percentage of young people without work is double the national average."

Sapin called on the four countries meeting in Rome to "react quickly, using the resources already available," such as the €6 billion ($7.99 billion) earmarked for the battle against youth unemployment in the 2014-2020 European Union budget.

Italian Prime Minister Enrico Letta, at 46 one of the youngest leaders in the EU, has said he hopes Friday's talks will help "define a European employment policy, especially regarding young people".

According to the latest EU statistics from Eurostat, of the 26.5 million people who were unemployed in the EU in April, 5.6 million of them were under 25 years old, which was 100,000 more than a year earlier.

The highest youth jobless rates were scored by Greece (62.5 percent), Spain (53.2 percent), Portugal (42.5 percent) and Italy (40.5 percent), reflecting how young people are paying the price for tough reforms imposed to restructure economies and reduce debt.

While 26.5 percent of young people were unemployed in France, Germany and Austria had markedly lower rates, with 7.5 and 8.0 percent of young people out of work.

Friday's meeting is aimed at preparing the ground for the European Councils of June 27 and 28, at which youth unemployment will one of the key topics on the table, and a special meeting on the theme in Berlin on July 3.

The discussions will be followed by a meeting of European labour ministers in Madrid on June 19, according to a spokesman from the Spain's employment ministry, who said Spain "wants to promote credit for small and medium-sized businesses (SMEs) and measures to help employ young people.

"The idea of focusing on SMEs as a key to creating work for the young was touted at the end of May as part of a French-German drive to open doors for young people.  

German governmental sources said the ministers had adopted a "shared task on a European level regarding policies devoted to the labour market," looking in particular at "margins for improvement on transparency, the exchange of information on best practices, job centres."

The spokesman for the European Commissioner for Employment Laszlo Andor called for the four countries to "coordinate implementation of the Youth Guarantee scheme as soon as possible."

Funded by the European Union, the scheme stipulates that within four months of leaving education or losing work, under-25s would be assured a job offer, an apprenticeship or a traineeship.

Italian Labour Minister Enrico Giovannini said Letta has called for a "shock intervention" to tackle the crisis, with possible measures including tax cuts, changes to contracts and investment in job seeker services.

At the moment, Italy invests just €500 million euros ($666 million) a year in such services compared to € 5 billion in France.

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