Dramatic rise in unemployment rates for young people

No MoneyNo Money.Photo: pixabay.com

The proportion of young people outside the labour market is at its highest since the mid-1990s. Scientists warn that the situation could continue due to the recession.

Last week the Central Statistics Bureau (SSB) published the Labour Force Survey (LFS), which shows that the proportion of the population, who are working or seeking work, is declining. For Norwegians under 25 years old the drop is dramatic, writes Dagens Næringsliv.

The trend that Norwegian youths remain outside the is workplace because the share of long term unemployment has increased, fewer in the labour force have job to go to and fewer students have part-time job, explains senior adviser  in SSB, Erik Herstad Horgen.

In 2016, 55 per cent of people between 15 and 24 years partook in the workforce, the same percentage as from 1993 to 1995. In the late 90s, however, there was an increase in the economy that led to more young people joining the labour market.

-One can not assume that the same will happen again. 90s Norway experienced a boom after the crisis with strong growth in the oil industry, investments and strong employment growth.

It was a very favourable labour market at the end of the 90s, says researcher at the research institute FAFO, Jon Erik Dølvik.  The current situation is another of decline in oil prices, -Investments and income, in addition to the technological shift that can eliminate jobs.

– This time we need stronger measures to help lift the expertise of those who are most at risk of dropping out or have already dropped out, he said.


Source: NTB scanpix / Norway Today