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Europe’s Modest Proposal To End Unemployment: Slavery | Zero Hedge

Europe’s Modest Proposal To End Unemployment: Slavery | Zero Hedge.

Having spent weeks talking amongst themselves about the chronic and dangerous rise of youth unemployment in Europe (as we warned here), the Center of planning and Economic Research in Greece has proposed a controversial measure. As GreekReporter reports, the measure includes unpaid work for the young and unemployed up to 24 years old, so that companies would have a strong motive to hire young employees. “Unpaid” work sounds a lot like slavery to us… but it gets better; the report also suggested “exporting young unemployed persons.” No comment…

 

Europe’s youth unemployment problem is epic – 24.4% of Europe’s under-25 population is unemployed

 

 

GreekReporter notes the solution to Greece’s problems

Centre of planning and Economic Research in Greece has proposed a controversial measure in order to deal with the problem of increasing unemployment in the country.

 

The measure includes unpaid work for the young and unemployed up to 24 years old, so that companies would have a strong motive to hire young employees. Practically, what is proposed is the abolition of the basic salary for a year. At the same time the “export” of young unemployed persons was also proposed to other countries abroad, as Greek businesses do not appear able to hire new personnel.

 

According to the National Confederation of Hellenic Commerce, unemployment especially hits the ages between 15-24. The unemployment rate in Greece stands at 24.6% while 57.2% of young people are without a job. The majority of the unemployed (71%) have had no work for 12 months or more, while 23.3 % of the total have never worked. There were 3,635,905 people employed and 1,345,387 unemployed.

Whether it’s Europe in the 1930’s or the US during the same period (conflicts between strikers, the National Guard and armed militias), unemployment can create a powerful cocktail of unrest.

 

But turning your nation’s young into slaves does not seem like a good solution to us…

Baby boomers not to blame for youth unemployment – Canada – CBC News

Baby boomers not to blame for youth unemployment – Canada – CBC News.

Policy makers in North America and Europe have used the lump labour theory to argue in favour of curbing immigration and validating early retirement programs.Policy makers in North America and Europe have used the lump labour theory to argue in favour of curbing immigration and validating early retirement programs.

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A commonly held opinion is that older workers who stay on the job past the usual retirement dates and baby boomers just hanging on to their jobs are somehow denying young people entry to the workforce. But researchers say that’s not true.

U.S. research economist April Yanyuan Wu says there’s no evidence to support the view that retaining older workers hurts younger ones by reducing the number of jobs, and she co-authored a paper on the subject last year.

Wu, with the Center for Retirement Research at Boston, challenges the co-called “lump labour” theory, which can be traced to Henry Mayhew’s 1851 London Labour and the London Poor collection of research material.

The Victorian-era social researcher and journalist argued that cutting the number of hours employees worked would reduce unemployment.

Taking inspiration from this long-held simple premise that there are a fixed number of jobs available, some policy makers in North America and Europe have used this theory to argue in favour of curbing immigration and validating early retirement programs.

But most economists tend to frown on what they call the labour lump fallacy.

Wu points to what was happening in the 1960s and ’70s when women entered the workforce in greater numbers. There weren’t fewer jobs for men. The economy simply expanded.

Canadian labour force researcher Rosemary Venne says career patterns have changed dramatically since the post-Second World War era and the birth of the baby boom generation.

Venne, who has written papers on demographic effects on the labour force and careers with Canadian economist and demographer David Foot, says young people of today are taking “longer to launch into adulthood,” but it’s not simply a numbers game of pitting one generation against another.

Always higher youth unemployment

“I don’t see it,” she says. “One of the reasons why youth are having trouble getting established — and they always have trouble; there’s always higher youth unemployment — is they’re not as job ready as young people were maybe 20 or 30 years ago, because career patterns have changed, organizational hierarchies have changed, they’ve flattened. There are not as many entry level positions.

“So the fixed career ladder of the 1950s and ’60s has really given way to more varied career patterns where people don’t stay in a workplace.”

Organizations don’t hire the army of entry-level labour they use to and have fewer layers in the corporate hierarchy, says Venne, who teaches at the University of Saskatchewan’s Edwards School of Business. More companies are using technology, direct data entry and robotics.

Period of youth a ‘complex life stage’

“The stage of youth has become a more complex life stage. It used to be a stage that you were job-ready after high school. You jumped into a job and you left home pretty young,” Venne says, but home-leaving ages have really increased over the years.

Here are a couple of Canadian “launch” stats:

  • In 2006, 60 per cent of young people from the ages of 20 to 24 were still living at home.
  • In 1986, that figure was less than 50 per cent (49.3 per cent).

Clearly, 15- to 24-year-olds in Western society face different challenges than their parents at that age.

In 2010, Venne released her paper titled “Longer to launch: Demographic changes in life-course transitions.” In it, she writes that many stages of life are lengthening, including the period when young people are dependent on parents.

“They’ve got a lot choices in education, and jumping into that is going to delay the launch into a career,” she says. “It’s a reflection of new realities, changing career patterns, longer life expectancy. You just need flexibility.”

She says, in some ways, parents are providing that by supporting adult children still living at home, “and sometimes paying for their education.”

Their children are not only staying in the nest and starting jobs later, but also marrying and having a family of their own later, so it’s a given that they’re relying on their parents a little bit longer.

 

 

 

Spain Youth Unemployment Rises To Record 57.7%, Surpasses Greece | Zero Hedge

Spain Youth Unemployment Rises To Record 57.7%, Surpasses Greece | Zero Hedge.

There has been much speculation recently about some immaculately conceived Spanish economic recovery. And while it has certainly sent the local Ibex stock market soaring, we fail to see any indication of such a recovery, at least in official economic data. The latest example being, of course, today’s European unemployment for November, which at the Euroarea level remained flat at 12.1%, which also is the all time record high following a prior revision. However, what is more troubling is that according to the official European statistics keeper, Spanish unemployment in November was 26.7%: tied for the all time high seen in October and hardly an indicator of some imminent economic renaissance. There is, of course, always December – that month in the New Normal when hiring really picks up.

But where things get really bad is when one looks at Spain’s youth unemployment. At 57.7% in November, nearly two in three Spaniards under 25 had no job, and the nail in the coffin for the “recovery” is that this rate is now well above the latest update from Greece, where the youth unemployment was “only” 54.8% as of September.

And now, buy Spanish bonds and stocks, because “the recovery.”

Source: Eurostat

Youth Unemployment Is The Next Global Crisis

Youth Unemployment Is The Next Global Crisis.

 

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