EU leaders want to put aside as much as 22 billion euro to stimulate youth employment in the region. The sum is not likely to be enough because more than 5 million young people in the region who want jobs do not have them. In some nations, particularly Spain, about half of the people between 16 and 24 are unemployed. The problem in the U.S. is not as bad. “Only” 18.1% of young Americans in the same age group are unemployed. But the U.S. government, unlike the EU, has not suggested any specific federal funds be used to help young Americans, and that is a surprise.
The U.S. should be in a better position to set aside funds to help young people find jobs. It does not have to coordinate the needs of a large number of nations with different needs. The U.S. deficit may be high and the national debt may be growing at an unprecedented rate. But America is not in a recession, while much of Europe appears to be.
There is one similarity between the U.S. and Europe. Youth unemployment in America is a local problem. Joblessness is much higher in some parts of the country than in others. The federal government would need to acknowledge that. Congress would need to agree that not every district and not every state should get equal amounts of aid. Connecticut does not need the same level of stimulus as Mississippi. But Congress has had trouble agreeing on a number of financial and economic issues, particularly budget reductions to balance the budget. Unemployment among the young may be added to the list of issues that are debatable.
The chances for aid to states where a large percentage of 16-to-24 year olds are out of work compared to the rest of country will go unaddressed. It will go unaddressed for the same reasons that the worst housing markets in America are not treated differently than those that are in relatively good shape. A congressman from Connecticut may object to tax money going to Mississippi while little goes to his state. The unemployment problem among the young will be hostage to the idea that each state’s trouble should be addressed equally to all others. And, it should not be.
Douglas A. McIntyre
Are You Ahead, or Behind on Retirement? (sponsor)
If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention. Many people have worked their whole lives preparing to retire without ever knowing the answer to the most important question: are you ahead, or behind on your retirement goals?
Don’t make the same mistake. It’s an easy question to answer. A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With SmartAsset’s free tool, you can connect with vetted financial advisors in minutes.
Why wait? Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.