Question

page 245 7.1. what are the major reasons for unemployment? due to labor - market regulations that make it difficult for young workers to break into the labor force, spain has the highest level of youth unemployment (age 15 - 24) in europe. the youth unemployment rate peaked in 2013 at 55.7% and has since fallen, but as of 2018 it was still 33.4% (ilo estimates). based on this information, select whether the following suggested measures would reduce or increase spanish youth unemployment. reduce(s) youth unemployment drag appropriate answer(s) here increase social security contributions by companies encourage students to stay in the education system longer enable youth to leave high school at a younger age lower the age at which students can enter dedicated skills - training programs increase the number of jobs that are covered by fixed - term contracts make it easier for companies to break fixed - term contracts to lay off workers offer a government subsidy for companies that hire long - term unemployed youth increase(s) youth unemployment drag appropriate answer(s) here

Explanation:

1. Increasing Social - Security contributions by companies makes hiring more costly, likely increasing youth unemployment.
2. Increasing fixed - term jobs gives more employment opportunities, reducing youth unemployment.
3. Encouraging students to stay in education longer means fewer enter the job market immediately, reducing youth unemployment in the short - term.
4. Making it easier for companies to break fixed - term contracts makes employers more hesitant to hire, increasing youth unemployment.
5. Enabling youth to leave high school at a younger age floods the job market with less - skilled workers, increasing youth unemployment.
6. Offering government subsidies for hiring long - term unemployed youth encourages hiring, reducing youth unemployment.
7. Lowering the age for skills - training programs equips youth with skills, increasing employability and reducing youth unemployment.

Answer:

Reduce(s) Youth Unemployment: increase the number of jobs that are covered by fixed - term contracts, encourage students to stay in the education system longer, offer a government subsidy for companies that hire long - term unemployed youth, lower the age at which students can enter dedicated skills - training programs
Increase(s) Youth Unemployment: increase Social Security contributions by companies, make it easier for companies to break fixed - term contracts to lay off workers, enable youth to leave high school at a younger age