The financial crisis that hit the globalmarket in the middle of 2008 gave way to the sharpestcontraction of the European economies since the GreatDepression. In 2009 the economic output in the countries ofthe European Union shrank 4.5 percent, the largest reductionin GDP since its creation. Since then, the economies haveslowly recovered, but unemployment has continued to rise,reaching 11 percent in 2013, up from 7.1 percent in 2008.The economy of the European Union shrank 4.5 percent, thelargest reduction in its GDP since the Union s creation.Furthermore, for the European Union as a whole, long-termunemployment among 15- to 64-year-olds has increased from37.2 percent in 2008 to 47.5 percent of total unemploymentin 2013. In several countries more than half of thoseunemployed are long-term unemployed, that is, they have beenlooking for jobs for more than 12 months. In Greece andBulgaria the share of long-term unemployed in 2013 was 67.5percent and 57.3 percent, respectively. Youth unemployment,on the other hand, has increased almost 8 percent since2008, reaching 23.3 percent in 2013 in the EU-28 countries.In Bulgaria, Romania and Hungary, around a fourth of 15- to24-year-olds are unemployed; in Greece close to 60 percentof youth were unemployed in 2013. Long spells ofunemployment expose individuals to impoverishment. They canalso lead to deterioration of skills and detachment from thelabor market. Youth unemployment is particularly concerningas it risks damaging longer-term employment prospects foryoung people, leading them to face higher risks of exclusionand poverty. Youth unemployment also has growth implicationsas a generation of educated and productive people are notworking at their potential. Finally, very high levels ofyouth unemployment for long periods of time can become athreat to social stability.
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