The PIGS nations have all now smashed through the Maginot Line of 40% youth unemployment with Italy finally catching up (Italy 40.5%, Portugal 42.5%, Spain 58.2%, and Greece 62.5%). What is more concerning is that not only are these rates extremely high but they are accelerating, seeing their rates rising faster in recent months.
Europe’s youth unemployment rate continues to climb higher (24.4%) having not fallen for 2 years. Spain is the ‘winner’, of sorts, with 41 consecutive months without a drop in youth unemployment. With welfare benefits running dry, Sweden and Switzerland temperaments already running high, the climate this summer could quite easily get alot hotter, escalating into full scale social unrest.
Ireland, the silver lining, has seen its youth unemployment rate drop for 10 of the last 11 months and has dropped to a ‘respectable’ 26.6%, the lowest since July 2010. The issue with Irelands figures is that they have high instances of emigration when things start to turn for the worst, as well as the FAS employment courses that take youth unemployment numbers down further. Things could be alot worse.