Countries like Japan, America, and northern Europe, where factories often have the latest tech, have far fewer unemployed young people than countries in southern Europe or India. The biggest problem is inflexible labor markets that make it hard to hire/fire and modify jobs.
Labor laws in Germany and Sweden are among the most inflexible ones in Europe but both countries are doing pretty well compared to the rest of Europe regarding unemployment.
Spain and Greece didn't have a problem with inflexible labor market. They had (and still have) a very serious problem with money circulation. Both countries had very high self-employment rate just before the recent crisis (25+%, three times higher percentage than Sweden or Germany), huge services sector and small industry. Their international income was mostly from tourism, not export of goods.
So I have a question for you: What happens when most of your customers run out of money? When you're a medium or big manufacturing business, you'll find new customers who have money. When you're self-employed and working in services, you'll go out of business. When 25+% of the entire country are self-emloyed people working in services, even a short recession can trigger massive domino effect.