Unemployment and economic security for young adults in Finland,Norway and Sweden: From unemployment protection to poverty relief

In this study, we investigated if there has been a displacement in the type and coverage of welfare services available for young unemployed adults in Finland, Norway and Sweden over the last two decades. This question is important because a number of studies have argued that the generous unemployment benefits and extensive labour market intervention found in the Nordic welfare states shield young people from the most severe consequences of economic inactivity. In this article, we instead show that during this period, less generous means‐tested unemployment and social assistance benefits have become the most important form of income protection for young people. In evidence, earnings‐related unemployment benefits now cover only 10 per cent of unemployed Swedes and Finns and 45 per cent of unemployed Norwegians aged 24 years or younger. This development marks a significant change in our understanding of unemployment protection for young people in Nordic countries.     

How unemployment duration affects social assistance receipt: evidence from Finland

This article reports on a study of the impact of unemployment duration on the probability of becoming a social assistance recipient and on the time spent on social assistance. The data are taken from a local Finnish labour market consisting of the cohort of unemployed people at a given date (n = 2,274). The data are linked to information about the number of months recipients received social assistance during the subsequent year. Count data regression models of the hurdle type are estimated. The results of the analysis suggest that the impact of unemployment duration on the probability of becoming a social assistance recipient is explained to a large extent by changes in the distribution of types of unemployment benefits between people with different lengths of time spent in unemployment. Unemployment assistance recipients are more likely to become social assistance recipients and to spend longer periods on social assistance than are recipients of unemployment insurance because the unemployment benefits for the latter are higher. Among social assistance recipients, time spent on the transfer increases with unemployment duration only for those who are in frequent need of assistance.     

Attitudes towards the unemployed. An analysis of Swedish survey data

To be unemployed is often associated with being stigmatised by others. People may blame the unemployed themselves, insist that they could find a job if they tried harder, maintain that too little is demanded from recipients of unemployment benefits and consider differences in standard of living between the unemployed and the employed too small. This article is aimed at studying the prevalence of such negative attitudes and to examine the determinants behind them. In May 2000, questions were added on to a randomly selected subsample in the regular Swedish labour force survey. The results indicate that own unemployment experience and perceived risks of becoming unemployed make people less apt to blame the unemployed. Having family members or close friends with unemployment experience tends to have a similar impact. In contrast, young people more often express stigmatising attitudes. With respect to social class position the results are divided.     

The quest for sustainable employment: Challenges faced by young people during the job‐search process

Young people who are unable to find and sustain employment are at risk for long‐term social and economic exclusion. Active labour market policies (ALMPs) addressing the problem of youth unemployment have focused on building the employability skills of young job seekers to expand their employment opportunities. Yet research exploring how young people navigate the job‐search process is limited. Drawing on interviews with young Australian job seekers and their employment consultants, this article addresses the questions of how young people navigate entry into employment through the job‐search process and what challenges they face. The study revealed three common frustrations experienced by the young people during their job‐search: employers' expectations of relevant work experience in the young person's preferred occupation, being required to apply for jobs not aligned with their career aspirations, and the impact of personal factors on their ability to confidently present themselves to prospective employers. The findings highlight the need for ALMPs and employers to facilitate positive employability support mechanisms that will build a stable platform from which young people can build a trajectory towards sustainable employment to reduce long‐term youth unemployment.     

Youth, unemployment and political marginalisation

The article investigates the impact of being unemployed on political marginalisation among young people. Are unemployed youth politically marginalised compared with employed youth? Is the impact of unemployment on political marginalisation related to the development of the welfare state? Based on Marshall’s concept of social citizenry, and Esping‐Andersen’s theory of decommodification politics, the impact of unemployment on political marginalisation was expected to be least in the most‐developed welfare states. In these countries, welfare policies were expected to counteract marginalisation among the unemployed. The analyses were based on the Eurobarometer survey Young Europeans from 1990. Three aspects of political marginalisation were investigated: political confidence, political interest and political extremism. Unemployed youth express less confidence in politics, they talk less about politics and they more frequently support revolutionary political ideas, compared with employed youth. The greatest difference in political confidence between unemployed and employed is found in Great Britain, while Italy represents a deviant case where the unemployed have more confidence than the employed. The development of the welfare state does not appear to be a crucial factor for political confidence among the unemployed.     

Youth unemployment and mental health – gender differences and economic stress

This article accounts for a study among 81 unemployed people under 25 years of age and 143 youth trainees in a small municipality in central Sweden. The results show an explicit relationship between unemployment and mental ill health among young people. One unemployed man of four and every second unemployed woman feels that the mental well-being grew worse when they became unemployed. The opposite is experienced by one male youth trainee of four and four female youth trainees of ten, who state that their mental well-being improved when they got into a youth training program after having earlier been unemployed. The results also show that young people with poor finances on the whole have more mental troubles and anxiety about the future than young people with good finances have. The article discusses possible explanations for the patterns with respect to gender and the private financial situations that appear in the results.     

Jobless or Working Poor in the Kyrgyz Labour Market: What Role for Social Policies?

This paper attempts to identify the multiple aspects of vulnerability in the Kyrgyz labour market. Particular attention is devoted to the working poor and precarious workers. This analysis is undertaken using the Kyrgyz Poverty Monitoring Survey, which is the only survey to date that allows a comprehensive analysis of poverty and labour market outcomes in the Kyrgyz Republic. The period under investigation covers the years 1997 to 1998, for which data are available. The results point to the extreme vulnerability of individuals with less education and women, who cumulated a high risk of being unemployed, of remaining longer in unemployment, of being discouraged unemployed and, if employed, of being low‐paid or working in precarious jobs. Other groups facing a high risk of exclusion, both from and within employment, were people with disabilities, individuals living in rural or depressed areas, young people and internal migrants. The multiple aspects of vulnerability in the Kyrgyz labour market, in particular the large overlap between work and poverty, have important implications for the design of effective social policies.     

Structural unemployment. An analysis of recruitment and selection mechanisms based on panel data among Danish long-term unemployed

The perception of structural unemployment – summarised in the notion of 'Eurosclerosis'– became almost hegemonic during the 1990s. Policy makers all over Europe tried, by means of supply-side policies, to counteract the lack of incentives in the developed European welfare states, the lack of qualification on the post-industrial labour markets and the personal decay due to long-term unemployment. However, based on the critical case of Denmark, this article challenges the perception of structural unemployment and suggests an alternative business cycle/barrier perception. At the macro level it is difficult to explain the Danish decline in unemployment from 1994 to 2000 within the structure perception. The lack of explanatory power of the structure perception is further highlighted in micro-level analyses conducted on a panel study of long-term unemployed. Based on the unemployed's own assessments, we find no indications of supply-side problems. These results are supported by analyses of actual labour market integration of the long-term unemployed in the period between 1994 and 1999, which show that education level and previous unemployment had no noteworthy influence on labour market integration, whereas age had a decisive influence. These surprising results further undermine the perception of structural unemployment and the supply-side policies rooted in this 'mistaken' problem definition.     

Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age

Pfeifer, M. Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age This article aims to show which policy responses 14 Western European countries have adopted to deal with rising unemployment levels and increased need for benefits during working age. In contrast to earlier studies, both components of unemployment benefits (UB), i.e. unemployment insurance and unemployment assistance, were taken into account in a social rights indicator that depicts the legal entitlements of the unemployed. In total, there were eight indicators of both UB and social assistance representing expenditure, generosity, problem pressure and benefit entitlements. The following cluster analysis groups countries using these indicators. The resulting typology consisted of four ways of protecting the working‐aged: an extensive safety nets type operating well with functioning labour markets; a liberal protection type dealing with low levels of unemployment; a targeted protection type combined with an insider–outsider divide on the labour market; and lastly, a patchy safety nets type facing high unemployment levels.     

CONSOLIDATING AN INDUSTRY AND PROLONGING DEPENDENCY: PROFESSIONALS,POLICIES AND YOUNG PEOPLE

This article examines the nexus between professionalism and the representation of social problems among some young people. It considers how policy and professional interventions involve problem-setting as well as problem-solving activities. A central argument is that a primary effect of both professional activities and of major changes to the youth labour market has been an extension of dependency for many young people. No matter how young people experience the disappearance of the youth labour market, the fact remains: most young people have been permanently excluded from full-time work. As we reach the close of the twentieth century and without essentialising ‘youth’ it seems that more and more young people are unable to live autonomous lives that resemble adulthood until their mid-twenties. For some young people staying on in education, remaining out of the full-time labour market until their mid-twenties may not mark a dramatic shift in their experiences, but for other young people such trends have a dramatic impact on their life-worlds.     

Coping with long–term unemployment: economic security, labour market integration and well–being. Results from a Danish panel study, 1994–1999

On the basis of a Danish panel study of the long–term unemployed 1994–1999, the article challenges core premises underlying labour market reforms, assigning too high a priority to work and work incentives, and too little priority to social protection. Economic hardship has become widespread among long–term unemployed even in Denmark, and this is a more serious threat against well–being than unemployment as such. Generous social security, denounced as 'passive support', enables the unemployed to cope with their situation, and there are no signs of any 'dependency culture'. Incentives in terms of economic hardship may stimulate active job seeking but the panel study reveals that it has no positive effect on subsequent labour market integration.     

Unemployment insurance in Bulgaria and other East European countries: The transition to a market economy

Unemployment places those it affects in a situation of dependency on unemployment benefits. The regulation of that dependency and the measures necessary to avert it, in Bulgaria (and also in other East European countries) during the period of transition to a market economy, forms the subject of labour and social insurance legislation relating to unemployment and introduced on a temporary basis. Unemployment insurance benefits (unemployment benefits in cash, unemployment assistance, social assistance) are provided for limited periods fixed in the light of the nature of the benefit, the causes of unemployment, the number of years of service, age, gender and other factors. The degree of dependency of unemployed persons on such benefits is also determined by the level of those benefits. The principal categories of legal instruments by which that dependency can be averted or reduced are (1) contributions by the State to the establishment of labour law relationships by providing information to unemployed persons on job vacancies, vocational training and retraining measures, job creation measures and placement; (2) incentives to employers to maintain existing jobs and to create new ones (credits, exemption from interest payments, etc.).     

Mental Health and Social Exclusion among Unemployed Youth in Scandinavia. A Comparative Study

Although there has been considerable research on the relationship between mental health problems and unemployment among youth in a national context, there have been few comparative studies involving countries with different cultures and different levels of unemployment. Surveys in the five Nordic countries (Finland, Iceland, Norway, Sweden and Denmark) of nearly 8,000 young unemployed people enable us to study young peoples' experience of unemployment in a comparative perspective. Representative samples of unemployed youth were drawn from the national unemployment registers. In Sweden the sample consisted of 3,998 young people with a response rate of 63%, in Finland 2,386 (response rate 73%), Iceland 2,280 (response rate 60%), Denmark 1,540 (response rate 76%) and Norway 2,000 (response rate 56%). The data were later coupled to data from the unemployment register in the respective countries. The populations were interviewed 6 to 12 months after they were registered as unemployed.     

Financial hardship during unemployment in Norway: the impact of public and private income support

It is common to assume that long-term unemployment no longer causes financial hardship because of generous welfare benefits. It is further assumed that unemployment benefits have eroded the traditional role of the family in protecting its members against hazards. This panel study of long-term unemployed people in 1991-1992 demonstrates the inadequacy of unemployment benefits and the importance of family support in reducing the risk of financial hardship. Vulnerable household types, such as single people and families with limited economic resources, at the outset seem unable to bear the personal risk of unemployment that is built into the benefit scheme. Persons disadvantaged at the outset risk a downward spiral because of long-term unemployment. Especially during times of high unemployment, the compensation level is not optimal from a welfare point of view. Greater coverage and more generous unemployment benefits may help unemployed people to cope better financially and thus avoid applying for discretionary and highly stigmatized social assistance allowance.     

Unemployment, shame and ill health — an exploratory study

Unemployed young people in six Swedish municipalities were studied in respect of the degree of shaming elements experienced by them in their social environment and in respect of mental ill health. The nature of the investigation was exploratory. The study shows that experience of shaming elements in the environment owing to unemployment is relatively frequent. A larger proportion of the long-term unemployed and men account for more shaming elements than do the short-term unemployed and women. It seems as if the factor of shaming elements in the environment is important in order to understand the adverse health-related consequences of unemployment. A greater proportion of those who live in a more shaming environment show mental disorders, deteriorated health, changes in living habits, activities and social relations, than do those living in a less shaming environment. This report discusses possible explanations of the results in the light of existing moral concepts of work and unemployment, as well as of shaming attitudes towards the unemployed.     

Patterns of change in youth unemployment regimes: France and Switzerland compared

The comparison between France and Switzerland enables us to compare a country that has a strong interventionist tradition in the labour market and whose youth unemployment is endemically high with a more liberal country that is faced with a more recent increase in youth unemployment but which, nevertheless, remains relatively measured. Starting from different rules and values, the two youth unemployment systems resemble each other insofar as both exclude most unemployed youth from all available benefits. From this angle, French egalitarianism rejoins Swiss differentialism. In both cases, it is not the least of paradoxes that the system of unemployment insurance so little benefits those who are most vulnerable to the economic crisis and the present dearth of jobs.     

The "Employment-first" Welfare State: Lessons from the New Deal for Young People

New Labour is constructing an “employment‐first” welfare state. It plans through Jobcentre Plus to transform the passive culture of the benefit system by creating more explicit links between individual behaviour and engagement with labour market programmes. The New Deal for Young People (NDYP) has been at the forefront of these changes. This paper reports on the findings from four case studies that explored how the NDYP has changed young people's experience of the welfare state. It establishes that NDYP offers a mixture of employment assistance and “pressure” and has made progress in developing front‐line services and helping young long‐term unemployed people into work. NDYP does not, however, work for all. In areas of high unemployment and for some disadvantaged groups intermediate labour markets could enhance the New Deal and make real the offer of “employment opportunities for all”.     

Why targeting matters: The apprenticeship program for youth in the Czech Republic

In this paper, we analyze the targeting and outcomes of the apprenticeship program implemented under the Youth Guarantee/YG scheme in the Czech Republic. We examine the outcomes and targeting using counterfactual impact evaluation (quasi-experimental design) of the apprenticeship program on the basis of administrative data from the Czech Employment Office. The implementation strategy is analyzed using various policy documents. The findings indicate that the program is apparently targeted at those groups of young people who are less disadvantaged as regards education level and previous unemployment experience. At the same time, paradoxically, the effects in terms of outflows from the unemployment register are weak for the short-term and medium-term unemployed, as well as for low-skilled and high-skilled youth, and stronger effects are evident in the case of long-term unemployed and medium-skilled youth. The failures in targeting and in adjusting the program to the needs of more vulnerable groups of youth are due to an inconsistent implementation strategy of Czech Public Employment Services.     

Unemployment and psychological distress among young adults in the Nordic countries: A review of the literature

This article reviews Nordic research, published from 1995 and onwards, on the relationship between unemployment and mental health among young adults. Cross‐sectional, longitudinal and time‐series studies are included. Cross‐sectional studies show that the unemployed experience more mental health problems than the non‐unemployed. Leaving unemployment is associated with increased well‐being. Economic problems, feelings of shame and poor social support increase the likelihood of psychological distress. The longitudinal studies show that unemployment increases the risk of psychological distress and attempted suicide, after initial mental health status and confounding factors are accounted for. The relationship remains significant when time‐invariant characteristics of the individuals are controlled for. The time‐series studies found no relationship between unemployment and suicide, but levels of psychological distress were found to vary with changes in the labour market. This relationship remained significant after excluding the non‐employed, indicating that unemployment trends have effects beyond those directly associated with unemployment.     

Does Active Labour Market Policy have an Impact on Social Marginalization?

Countless evaluations of active labour market policy (ALMP) have been conducted in the last decade. The common denominator for most of these evaluations is a focus on employment (self‐sufficiency) as the dependent variable, where the success of ALMP is measured in terms of the number of unemployed finding ordinary employment after (or immediately before) participating in an activation programme. The main argument in this article is that this focus is inadequate. For many long‐term unemployed people, it would be an understatement to describe the road to employment as merely ‘bumpy’. Research must take this into consideration. This article therefore deals with the Danish activation policy from a new perspective by analyzing the impact on different aspects of social marginalization, focusing on long‐term social assistance recipients. Using data from a comprehensive, representative quantitative survey of Danish unemployed conducted in 2007, the first analysis convincingly reveals that we fail to find any systematic correlation between participation in ALMP and any of the social marginalization indicators. The second analysis presents a more mixed picture of the participant's own assessment of the impact of ALMP on their self‐esteem; some are quite positive, while others are more neutral or even rather negative. Taking the existing research into account, these results leave us with conceptual and methodological questions for further research.