The problem and the resources of youth unemployment in European Union and Turkey

In today's global economy, youth unemployment has become one of the most important problems of both developed and developing countries regardless of their economic structures. In this sense, not only unemployment is accepted as a global problem, but also youth unemployment is seen as a common problem of governments. Youth unemployment have emerged as a serious problem for industrialized countries in the 1980s, then, became the most urgent economic and social problem in labor markets in the early 21st century. In this respect, as it is in worldwide, the youth unemployment rate is two times higher than in the overall unemployment rate in European Union and in Turkey. Many macro- and microeconomic factors can cause high unemployment rates which make young population vulnerable in the labor market. This situation requires actions to solve the unemployment problem of individuals aged between 15-24. Increment in youth employment and ensuring the active participation of young population in the labor market is one of the top policy objectives in Europe. On the other hand, the fact which Turkey has a younger population than European Union countries, makes it advantegous to create a dynamic economy. Therefore, identifying the youth unemployment problem to implement the relevant policies is very important for both Turkey and the European Union countries. In this study, determinants of youth and general unemployment are examined for European Union countries including Germany, Austria, United Kingdom, Denmark, Finland, France, the Netherlands, Ireland, Spain, Sweden, Italy, Cyprus, Malta, Poland, Portugal, Greece and Turkey with panel data analysis. As a result of the study, the affect of economic growth, inflation and foreign direct investments on youth unemployment and general unemployment is negative, while the affect of financial crisis is positive. Moreover, youth unemployment is more sensitive to the effects of macroeconomic factors than general unemployment.