In addition to the unemployed (306,000), the unused labor potential also includes people without paid work who can work but have not recently looked for work, for example because they are discouraged (216,000) or are not immediately available for work (165,000 due to study or training). Part-time workers who want to work more hours also fall under the unused labor potential (354,000).
While the labor market has never been tighter – in the second quarter of 2021 there were 106 open vacancies for every 100 unemployed people – so there are a million people on the sidelines who can or want to work. This number has been declining for years. From the second quarter of 2014, the untapped labor potential decreased from 1.8 million to 1 million in the second quarter of 2019. It then temporarily increased sharply to 1.2 million during the first period of the corona crisis in 2020. After that, it is untapped. labor potential shrunk back to 1 million in the second quarter of 2021. Of these, 345 thousand were under the age of 25.
Nearly 40% of the unemployed in the second quarter of 2021 were aged 15 to 25, compared to 36% of the semi-unemployed who were not looking. Those who are searching but are not readily available for work tend to be a bit older than the groups that are available but not searching. Of them, 29% were under the age of 25 in the second quarter of 2021.
For the semi-unemployed, attending education is the most frequently cited reason for not being available for work. This concerns, for example, pupils and students who are looking for a side job or for a job after graduation, but cannot start in the short term. Of the 165 thousand unavailable job seekers, 55 thousand gave this as the reason (33%). Other frequently mentioned reasons are illness or incapacity for work (30,000), family care (12,000) or voluntary work (12,000).
Of the 216 thousand semi-unemployed who were available for work, 28% were not looking for education or study. These pupils or students could start in a (part-time) job, but have not looked for one in the previous four weeks. But the most frequently cited reason (37%) for not looking for work is that they expect few results. Furthermore, people indicate that they did not search because of illness or incapacity for work.
By the second quarter of 2021, nearly 30% of the unemployed had found work within three months. Of the semi-unemployed who searched, but were not immediately available, 24% had a job within three months. This was clearly lower at 15% for the available semi-unemployed.
Many young people on the sidelines in a tight labor market | Financial
Source link Many young people on the sidelines in a tight labor market | Financial