Keynote speech for the FIRES project: http://www.projectfires.eu/news/fires-conference-utrecht-2016/

1. A Solution for European Youth
Unemployment
Entrepreneurship
Dr. Peter Vogel
Peter Vogel Strategy Consulting
Switzerland
Mail info@petervogel.org
Twitter: @pevogel
Web www.petervogel.org

3. EU28 Youth Unemployment
3© Dr. Peter VogelOctober 14th, 2016
YouthUnemploymentRate

4. Youth-to-Adult Unemployment Ratio
4© Dr. Peter VogelOctober 14th, 2016
Data: OECD, 2015

5. 5© Dr. Peter VogelOctober 14th, 2016
Some more facts
 Most statistics ignore the NEETs (neither in
employment, education or training)
 In the US, 15% of youths are NEETs
 In the EU, the NEET rate increased by 2%
over crisis up to 17% in 2013, with Greece’s
NEET rate at 30%
ILO: “The youth unemployment rate (12.6% in
2013) would be a full percentage point higher if
it included the NEETs”
e
10
million
unemployed youths
Snapshot Latin America
(total youth: 106 million)
million youth that
neither work nor study
million youth work in
informality
Youth (15-24) Unemployment Indicators
1.2 billion youth worldwide = 17% of total population
75 million are unemployed = 40% of total unemployed
Data Sources: ILO, OECD, Eurostat, World Population Prospects
30
22

6. Major (largely ignored) Issue: NEETs
6© Dr. Peter VogelOctober 14th, 2016
Data: Eurostat

7. Drivers of the Youth Unemployment Crisis
7© Dr. Peter VogelOctober 14th, 2016
Demand Side
 Low aggregate demand
 Inflexible labor markets / temporary jobs
 Informal recruiting inaccessible to youth
 False expectations of employers
 retirement age keeps older workers
Supply Side
 Lack of preparedness for work
 Lack of adequate skills and experiences
 Academic inflation
 Characteristics / attitude towards work
 Rise of youth population in some regions
 False expectations of young people
Mismatches
 Skills / capabilities mismatch
 Over-qualification
 Under-qualification
 Regional differences (developed vs. developing)
 Expectations mismatch


8. What if We Don’t Find Adequate Solutions?
8© Dr. Peter VogelOctober 14th, 2016
Individual Consequences
 Scarring effect on the person’s human-
and social capital
 Negative life-long effects on earnings
 Negatively influences psychosocial
development and overall well-being
 Prevents young people from developing
adequate work ethics
 Difficulty of young people to become
independent from parents
 Forces young people to accept part-time
or temporary employment
 Increases chances of subsequent
unemployment
Societal & Economic Consequences
 Waste of economic potential
 Threat of an undermined social stability
 Brain drain towards countries with better
job opportunities
 Loss of tax earnings for countries
 Increased criminality rate and anti-social
behavior, requiring more security
It is estimated that joblessness in the United
States alone will account for a total of $20
billion in lost earnings over the next ten years
Jacobs, 2014

9. 9© Dr. Peter VogelOctober 14th, 2016
Title & Initiator/Proposer Chapter Title & Initiator/Proposer Chapter
4.0 Schools 5 Labster 5
Aiducation 5 Leadcap 5
Apple Distinguished Educator 5 Leaders of Tomorrow 8
Arab Stabilization Plan 7 LYNX 6
Arabreneur 4 Maker Education Initiative 5
AshokaU Changemaker Campus 5 Makerbot Academy 5
Barclays Apprenticeship Program 6 Manpower Programs 6
Beyond the Classroom 6 Microglobal Age 8
Build Your Own Business Curriculum 5 Mobile Schools 5
Career Integrated Learning Project 5 MoneyThink 5
ccInspire 6 Monkeywrench 5
Cedefop 5 Nearpod 5
Ciett 7 Nestlé needs YOUth 6
CodeNow 5 NFTE 4
Coderise 5 Open University of West Africa 5
Coursera E-Learning Portal 5 Operation HOPE 4
Credit Suisse Apprenticeship System 6 P21 Initiative 5
D.schools 5 Peruvian Action Plan for Youth 7
Dar Blanca Radio 4 Piggybackr 5
DevEd 5 Project H Design 5
Diageo Apprenticeship Program 6 Project Leonhard 4
Die Chance Foundation 6 Quest University 5
DonorsChoose 5 Reverse Mentoring 6
Ecosofft 4 Sanssi Card 7
Education for Employment Foundation 6 School for Startups 4
Edupass 8 ShowMe 5
Elgazala Technopark 4 Skillshare 5
Empact 4 Skoll World Forum: Solutions 8
Emzingo 5 Social Innovation Institute for Educators 5
enke: Make your Mark 8 Social Ventures Australia 5
Enstitute 5 Socionext 8
Enternships 4 Socrative 5
EU Solutions to Youth Unemployment 7 Souq.com 6
Euforia 5 South African ALMPs 7
Experience Institute 5 Spark Inside 8
Fab Labs 5 The Big Issue 4
Flexicurity Model 7 The Entrepreneurs’ Ship 4
Generation Enterprise 4 The Fitzroy Academy 5
Generation Success 6 The Future Project 5
Global Economic Symposium Solutions 8 The Prince’s Trust 7
Google for Education 5 Think Impact 5
GUESSS Project 4 Tradability of Tasks 8
Hackathons 5 Treehouse 6
Hole in the Wall 5 UK “Youth Contract Program” 7
ILO Solutions to Youth Unemployment 7 WEF Solutions 8
INJAZ-UAE 4 Work Inspiration 6
Integration durch Austausch 7 Working for YOUth 6
Job Sharing 6 World of Warcraft in School 5
Jobzippers 5 Worlds of Work (WOW) 6
Jobzippers Speaker Series 4 Young Enterprise Switzerland 4
Junior Achievement 5 ONEM: Self-Employment Scheme 7
Khan Academy 5 Ze-Ze 8
Solutions featured in “Generation Jobless?”
Project
“YouthUnemployment.Org”
 Website featuring a database of
solutions for youth
unemployment
 Community-driven approach with
a review system of submitted
solutions
 Commenting & feedback
functionality
 Search & filter to find the most
relevant solutions

10. Solutions – Multi-Stakeholder Efforts
10© Dr. Peter VogelOctober 14th, 2016

11. 11© Dr. Peter VogelOctober 14th, 2016
Tomorrow’s Job Creators

12. Why Foster Youth Entrepreneurship
12© Dr. Peter VogelOctober 14th, 2016
Entrepreneurship is becoming increasingly accepted as a suitable
means and critical alternative for income generation among young
people and a mechanism to unleash their economic potential.
3 main (not the only) reasons why to foster youth entrepreneurship. It…
• …creates employment opportunities for the founders and their
employees. In the case of young people, they are more likely to hire
other young people (homophily principle).
• …helps develop new skills & professional experience that, in
turn, can enhance general employability.
• …revitalizes local communities through new products and
services and keeps otherwise young and idle people occupied,
which is always better than not having anything to do.

13. Evidence for Impact of Entrepreneurship
13© Dr. Peter VogelOctober 14th, 2016
Entrepreneurship is a main driver of economic development, job creation
and a country’s competitiveness.
Three supporting arguments from research:
• The average net employment growth rate in the United States
between 1980 and 2005 would have been negative, if not for the jobs
created by new ventures.
• Jobs created from new ventures are less volatile & sensitive to
economic turbulence compared to jobs in the overall economy.
• The creation of new firms has an important effect on a nation’s
political & societal stability, as it promotes social cohesion by
offering the opportunity of self-employment to everyone & allows
broad participation in the economy regardless of a person’s
background.

14. Entrepreneurship Ecosystems
14© Dr. Peter VogelOctober 14th, 2016
Source: Vogel, 2013
Let’s work together to build stronger entrepreneurship ecosystems

15. Thank you for your attention!
15© Dr. Peter VogelOctober 14th, 2016
30% discount for participants!
Order the book on www.palgrave.com and
use the code PM15THIRTY
Dr. Peter Vogel
Peter Vogel Strategy Consulting
Mail info@petervogel.org
Twitter: @pevogel
Web www.petervogel.org
“The jobs we need to create will come neither from the big corporations nor
from government, but they will come mainly from entrepreneurs who represent
66% of job creation within the OECD and 85% within the EU.” Grégoire
Sentilhes, co-founder of the G20 Young Entrepreneurs’ Alliance