Older people staying on is not the reason for higher youth unemployment.  Youth unemployment has always been higher, this is due to the fact most jobs require certain skill sets and even if open, if one doesn't have them they won't get the job.  You gain experience by working in a job not just education so perhaps more Co-Op programs at higher educational institutions and perhaps even tax incentives to hire younger workers.  The reason most companies are reluctant to hire younger workers is if you cannot get a reference from a past employer you are taking a gamble whereas those 30 and up you can get a reference from a past employer which can help decide if they are suitable or not.