( CNN ) -- The recession in Europe is entering its fifth year and unemployment does n't look like it will be returning to normal levels anytime soon . In the countries with debt problems , especially Greece and Spain , unemployment skyrocketed in the last couple of years and is now at unprecedented levels . One in two young workers is out of a job . Are we losing a whole new generation of young workers ? Are we wasting hard-earned skills ? Some countries are actually doing better than in previous recessions . For instance , unemployment in Germany and the Netherlands is no longer a big problem . But the countries that are doing better tend also to be the countries whose sound fiscal finances allowed them to avoid a deep recession . It is clear unemployment will not recover fully before the debt crisis is over and Europe 's economy improves . Read more : Portuguese head to Mozambique to escape eurozone crisis . The fiscal consolidation programs , although necessary in the long term , are making the unemployment problem worse -- and policy is needed to offset their impact on jobs . The policies needed to combat unemployment go against the thrust of fiscal consolidation ; it is not only an economic problem but a serious social problem . Read more : Spain braces for protests as budget cuts are unveiled . Deep recession and high unemployment tear into the fabric of society . Unemployment causes misery to families , destroys their self-esteem and wastes their potential . It is both a waste and a regression . Jobless youth often feel rejected by society , and react either by withdrawing , by wasting themselves or by lashing out violently , as we have already seen in some southern countries . Spending money on policies that can combat the problem until the economy recovers is a good investment in the future of our societies . Read more : Greece : When anger goes beyond despair . It is a better investment than building a new road or airport . The road construction can be postponed without lasting damage to the project ; a job can not be postponed without lasting damage to the person . Read more : Could derelict airport be Greece 's economic savior ? For the young , excluding the education and training budget from the fiscal consolidation programs is essential . I would go further during recession and stress the importance of increasing spending on training and job subsidies for new job creation . Two measures that helped Germany keep youth unemployment low are apprentice training and subsidized employment for young people , including self-employment . There is a lot of creativity and entrepreneurship in young people that can be unleashed if initial financing can be found . Governments can help in this , just as they help with student loans . I am in favor of extending the student loan scheme to start-ups by young people , subject to approval of the start-up by the appropriate government department . In recession the government should become the `` angel '' of young entrepreneurs . Read more : Why Hollande must show clearer leadership . Unfortunately if left alone employers will not create enough jobs in recession to keep unemployment low . Of course , to some this is the essence of recession but the jobless rate depends also on many other factors , not just on the fall in demand . Just as government should help reduce the impact of recession on unemployment through programs , workers and their unions should be prepared to take pay cuts and share out work in recession . The alternative is much worse : it shifts the burden of recession onto the few who have been unfortunate enough to lose their jobs . It is appalling to hear sometimes that even in recession there are people who earn overtime wages . Work should be shared out , even if it means lower pay for those who would have kept their jobs .
Germany keep youth unemployment low by apprentices and subsidized employment , writes Pissarides . Pissarides says deep recession and high unemployment tear into the fabric of society . The policies needed to combat unemployment in Europe go against the thrust of fiscal consolidation .