Youth unemployment to impact global consumer goods market
Euromonitor says some segments will not return to pre-crisis levels by 2017
In many of the world’s largest economies, youth unemployment could have a long-term effect on purchases of consumer goods, according to market researcher Euromonitor. Youth unemployment has been significantly higher than the total unemployment rate since the onset of the global economic downturn, said the company, and with young people increasingly shut out of the job market, spending in some key segments of the consumer goods industry is not set to return to pre-crisis levels by 2017.
According to Euromonitor, the main reason for youth unemployment is lack of experience, along with the decision made by an increasing number of baby boomers to delay retirement, which is contributing to the scarcity of jobs.
The impact of persistently high youth unemployment has already been deeply felt by the consumer goods industry in areas where young people are prime consumers, such as music, entertainment and apparel, according to Euromonitor.