Learning exchange programme: Social cost-benefit analysis of the Youth Guarantee
The workshop took place in Turin from 12 to 13 July 2017. It gathered managers of the Youth Guarantee teams of Latvia, Portugal and Spain to discuss the main elements to be taken into account while conducting a social cost-benefit analysis (SCBA).
Background
The global economic and financial crisis has hit young people in Europe hard. It has resulted in: (i) the deterioration of youth employment quality (ii) the highest youth unemployment since data have been collected and compared at international level; (iii) a longer time that is required to get a job (school-to-work transition); (iv), an increased discouragement and labour market detachment among youth; and (v) and greater labour market vulnerability of certain categories of disadvantaged youth.High youth unemployment and inactivity have a number of adverse consequences for individuals, the economy and society. The costs of youth unemployment and inactivity include higher benefit payments, foregone earnings and taxes, but also the costs associated with the long-lasting scarring effect of unemployment and inactivity on future income, unemployment risk, health status and social inclusion. It is in this context that in April 2013, The Council of the European Union adopted the Recommendation on “Establishing a Youth Guarantee”. This Recommendation calls for EU member States to ensure that young people receive a quality offer of employment, continued education, apprenticeship or traineeship within a period of four months of becoming unemployed or leaving formal education.
In the framework of the collaboration between the European Commission (EC) and the International Labour Office (ILO), a joint Action has been developed to support member States in enhancing national capabilities to assess and improve Youth Guarantee schemes
Against this backdrop, the ILO organized a learning exchange with the managers of the Youth Guarantee teams of Latvia, Portugal and Spain to discuss the main elements to be taken into account while conducting a social cost-benefit analysis (SCBA). This exchange took place at the International Training Centre of the ILO (Turin, Italy) from 12 to 13 July 2017.
Objectives
The objectives of the learning exchange programme were to:- Discuss methodological approaches to estimate the socio-economic costs of Youth Guarantees;
- Exchange learning and experience in respect of the main costs and benefits that take into account country-specific situations;
- Define the steps required to estimate the social cost-benefits arising from the implementation of Youth Guarantees.