Europe / Sharing Jobs by Early Retirement to Help the Young

In the search for solutions to Europe’s youth unemployment crisis, governments are blowing the cobwebs off a decades-old idea that many economists had hoped would remain in the attic for good.

Governments are considering using money from the European Union budget to fund early retirement for older workers. The idea is to free up positions for the millions of Europeans under 25 who can’t find a job.

Youth unemployment rates have reached staggering levels in countries hardest hit by the crisis: 60% in Greece, 55% in Spain and 39% in Italy.

Although the percentages are high because of the relatively small numbers of young people actually looking for work—as opposed to staying in school—economists agree that labor market conditions facing the young in these countries are truly dismal. That has sparked fears among euro-zone leaders that the situation could become socially explosive.

German Chancellor Angela Merkel will host a meeting of EU leaders and labor ministers on July 3 in Berlin to discuss how to defuse the youth unemployment problem. The early-retirement idea is likely to be discussed, officials say.

Chosen excerpts by Job Market Monitor

via Idling Older Workers to Help the Young—Or Not? – WSJ.com.