DETERMINANTS OF YOUTH UNEMPLOYMENT IN SEE COUNTRIES
DETERMINANTS OF YOUTH UNEMPLOYMENT IN SEE COUNTRIES

Summary/Abstract: As a result of the COVID-19 pandemic, as well as the economic crisis that national economies are facing, caused a significant distortion in the labor market. The unemployment rate in 2021 in the countries of Southeastern Europe is the highest in North Macedonia 16%, while the lowest unemployment is observed in Slovenia 4%. Differences in the balance of the labor market are evident within these countries. The EU member countries (Slovenia, Romania, Croatia and Bulgaria) have a significantly lower level of unemployment compared to the rest of the Southeastern European countries (SEE) that are not part of the EU. Young workers represent the most vulnerable segment of the labor market, especially in SEE countries. Within SEE countries, young workers from Western Balkan countries are still in an unfavorable position compared to the rest of the countries in the region. The countries from the Western Balkans record the highest level of youth unemployment compared to the EU average and SEE countries. Hence, a basic macroeconomic analysis of the determinants of youth unemployment in SEE countries is required. The results shows that growth of GDP, and the growth of Labor productivity has statistically significant influence on youth unemployment rate. The increase in GDP is directly related to the unemployment rate, and thus also youth unemployment.

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