Portugal: adoption of a program to support youth employment

The Portuguese government adopted a program to support youth employment, in the amount of EUR 344 million. It provides for a major cut to employers' social contributions for every fixed-term contract signed with a person under the age of 30 who has been looking for a job for at least a year. It also contains measures to support in-house internships and training. Portugal has received a EUR 78 billion bailout from the EU and the IMF. Brussels recently expressed concern over excessively high youth unemployment: people under 35 account for 36.6 percent of the current 15 percent unemployed population. (Ref. 120373)
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Support program. The Portuguese government adopted a program to support youth employment following pressure from the European Commission, worried about an “excessively high” youth unemployment rate – nearly 37 percent of jobseekers are aged 18-30. In Portugal, 15 percent of the active population is unemployed (7 percent in 2008). The government did an in-depth consultation of the social partners, worried about the impact of the crisis on a labor market run by the traditional processing...

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