Based on descriptive analysis of quantitative data from EU-28 and Ukraine, immediate consequences of unemployment are clearly negative lowering the well-being, health and autonomy of youth. The descriptive analyses reveal smaller or even no differences when comparing youth with permanent and temporary contracts. Thus, not having a job is the most substantial risk for social exclusion of youth. In the long run, experiencing unemployment as well as involuntary job loss during the early work career negatively affects health and well-being even more than 30 years later in life. The effect is considerably larger in magnitude for men than for women and if job loss occurred earlier compared to later in the work career. Further analyses reveal that the negative health consequences of unemployment, particularly in the case of men, extend beyond an unemployed young person and negatively affects also the health of the partner. Men’s unemployment deteriorates their female partners’ health most of all in conservative countries, with social norms supporting male breadwinner supremacy. These effects are also stronger in countries with stronger work ethics and countries with lower overall unemployment.
Moreover, the consequences of labour market vulnerability during the early work career were predicted for the living situation at old age. It was found that, nowadays, youths are well aware of the need for additional savings to ensure the decent living standard in their old age, but they are often unable to actually save. This is even more critical given that the generosity of public pensions is decreasing substantially. Particularly, negative long-term effects are expected in case of the experience of unemployment. Fixed-term jobs may also lead to socio-economic disadvantages in old age. This is because fixed-term contracts imply lower wage levels that have long-term negative consequences for public pension savings and restrict the opportunity to start investing into occupational or private plans. Even successful young people that are highly mobile in the labour market may experience social security deficits in old age because their high mobility will lead to a high number of fragmented pension rights that yield only little revenues.
Furthermore, 386 qualitative interviews were conducted with youths from nine selected European countries representing different welfare regimes. These interviews provided an in-depth understanding of how disadvantaged youths perceive their social situation and try to cope with it in differing economic, institutional and cultural environments. The Bulgarian, the Estonian, the Polish and the Ukrainian youths complained less about the lack of jobs than about “toxic” work and “harsh” working conditions of existing job offers decreasing their wellbeing and health. They all seemed to ask for stability and safety in the labour market along with better salaries in order to be able to afford everyday living. Youths in Greece and in Italy sounded hopeless and totally disappointed from their career prospects and future orientation in home country. In an environment of low unemployment in Germany, unemployed youths in Germany felt shame and self-blame as well as they reported experiences of social outrage and prejudice. In United Kingdom and Sweden, where unemployment rates of recent school leavers are on the decline, youths sounded more optimistic than the rest and asked for career opportunities that respond to their qualifications and dreams, as well as to a higher purpose in life.
Lastly, the diffusion and effectiveness of EU and national policies that address various issues of youth social exclusion were assessed based on multilevel analysis of comparative micro data and national reports from EU-28 and Ukraine. Based on the 29 national policy reports prepared by national experts a database of youth policies was created. Analysis indicates a universal shift from passive to active policies and strong employability focus. At the same time, the results from multilevel analyses show that the higher unemployment benefit generosity buffers the effect of unemployment and reduces the gap between unemployed and employed in terms of well-being, timing of leaving parental home and economic situation. Also other policies play important role, namely unemployment has less negative effects on well-being in countries with education systems that are less stratified, have higher enrolment in higher education, and provide more second chance opportunities concerning the access to higher education. Analysis of national reports also points out the major issues in quality of evaluations of active labour market policies, their purpose, scope and transparency. Especially neglected are long-term effects, unintended consequences and the cumulative impact of different interventions.
