You cannot sustain high youth employment while raising hiring costs

A recent analysis highlighted in the Financial Times on February 18, 2026, argues that maintaining high youth employment levels is incompatible with increasing hiring costs. The report suggests that raising expenses related to recruitment and employment can deter companies from hiring younger workers, who often have less experience and require more training. This dynamic poses challenges for labor markets aiming to reduce youth unemployment while implementing policies that increase employer costs. The issue is significant for policymakers balancing labor protections with employment growth among young populations.