The long-term impact of rising unemployment among the young could be felt for decades, according to the International Labor Organization (ILO), which estimates that 73.4 million young people or 12.6 percent of young people aged between 15 and 24 around the world are expected to be out of work in 2013.

It warned that the EU was at particular risk of the "scarring effects" of youth unemployment among an over-skilled and over-educated young generation forced to take informal and irregular jobs.

EU Commissioner for Employment, Social Affairs and Inclusion, László Andor, told that Europe was in the middle of a "very serious and complex crisis" as the joblessness rate hit over half the young population in Spain and Greece. "There is serious polarization among EU countries, so in certain countries in south Europe the youth unemployment rate is higher than 50 percent, it´s clearly a social emergency."

He added that "If the European Union continues to rely on excessive austerity and the so called internal devaluation of the deficit countries, I don´t think we will get out of this hole. You know to get out of the hole, we first need to stop digging and reconsider the macroeconomic policies, which provide a framework for everything else."

Source: CNBC