New research points to the role of field-of-study mismatch in explaining the long-term effects of cyclical labour market shocks. It suggests that policy effort ought to be directed not just towards the NEETs, but also towards youth who find employment during recessions, given their higher risk of prolonged field-of-study mismatch and lower wages if mismatch is accompanied by overqualification.

Previous posts (Youth Skills day 2015 and Investing in Disadvantage Youth) addressed some of the challenges posed by youth who are not employed or enrolled in education or training programmes (the so-called NEET group).  This group has increased in size since the recession: from 13.5 per cent of youth age 15-29 in OECD countries before the recession, to nearly 15 per cent in 2015 (OECD Employment Outlook 2016, forthcoming).  Rising NEET populations are one important reflection of the labour market difficulties that recent graduates may face during a recession.

But even among young people who are successful at finding jobs during a recession, new research suggests that the chances of finding a job that is a strong fit with one’s skills are worse.  Even more troubling – the negative effects of these poor initial matches can persist for years.

Read more in the link below: