Europe’s labour markets have favoured older workers at the
expense of younger ones. The latest in an occasional series on
structural reform OF ALL the euro zone's many problems, youth
unemployment is perhaps the most distressing. Joblessness among
young workers is around 30% in Portugal and nearly 50% in Spain.
Above-average unemployment is the norm for young people, even in
more liberal markets like America's. But Spain's youth
unemployment rate jumped by nearly 20 percentage points between
2007 and 2009, compared with a rise of seven points in America.
Labour-market regulations take much of the blame: while hard-to-
fire older workers luxuriate on permanent contracts, the young
are typically hired temporarily and are easier to sack. Such
“dual” labour markets are themselves products of reform.
Although American unemployment quickly dropped following the
troubles of the 1970s and early 1980s, European joblessness
remained stuck at high levels. Leaders recognised the need to
inject more flexibility into the la