Student ID: w17005765
Consequently, budget cuts proposed by Government into the education sector has witnessed schools closing and universities relying on a smaller budget. These actions were affecting the youth, their education, skills and social stability (Caldas, C, J. 2012). Consequences of contracted wage levels and the predominance of insecure or flexible norms of work has strapped young individuals with higher education to take on lower paid jobs or to emigrate elsewhere for better pay (UN. 2015). These consequences influenced Portugal's weak economy and social unrest between young individuals, eroding their skills, affecting their mental health and wellbeing (UNICEF, 2013). Measures taken by Government to curb recession by borrowing money from IMF drove to a higher inflation rate. Also, the government reduced its public spending on education, health, and infrastructure, these actions having a negative impact on its economic growth (Stephan, C. 2016). The inability to provide skilled workers to the market to help with its demand has resulted in a rise in prices for utilities, consumers low confidence in spending and a slowdown in export demand (CEIC, 2017).
The Portuguese government has set out changes to employment protection legislation designed to reduce youth unemployment and improve its economic growth by adopting more objective criteria of dismissals of workers and protecting them from dismissal without precise reason (OECD, 2015). Businesses approved the idea of more flexibility regarding employment, offering the employees more flexible working times that can help to balance their working and social life. However, this has been criticized by the General Confederation of the Portuguese Workers (CGTP) that specific laws allow employers to work up to 60 hours per week, and considered a step back in working regulations (Eurofound, 2009). Recently, the government has mentioned the willingness of allocating parts of income from IRC (Company Tax) to social security financial stabilization fund (Eco News, 2017).
These conclude that the Portuguese government and businesses approach towards youth unemployment and economic growth is one confident, visible and in continued development. Adjusted labour policies have led to faster of job creation and addresses the danger of long-term unemployment. However, the government and business could reduce youth unemployment and support economic growth by setting out sustainable development goals, improving education quality, increase expenditure on apprentice, training schemes and provide equal opportunities for all. By encouraging businesses to employ more youth it will benefit economy, businesses and the population itself.
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Student ID: w17005765
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