Earlier this month (August 11, 2017), Eurostat published the latest European Union data for – Young people in the EU: education and employment. This data now allows us to track the fortunes of three age cohorts – 15-19, 20-24 and 25-29 years since before the crisis to the end of 2016. So a teenager prior to the crisis (2007) would be transiting into the 25-29 years cohort in 2016. One of the disturbing trends shown in the data is the increasing number of young people in the older ‘youth’ categories that in 2016 we classified as being Neither in Employment, nor in Education or Training (NEET). Some will have been in that category for the entire duration of the crisis – that is, they dropped out of school early, are not receiving any skills development and are unemployed. Whereas in 2007, the proportion of NEETs in the 25-29 years cohort was 17.2 per cent, that figure has risen to 18.8 per cent by 2016 (although the peak of 20.7 per cent was reached in 2012). This suggests that the systems which provide transitions between education and employment are not working effectively because the demand-side of the labour market is deficient. That is, there is a lack of jobs available overall and the most disadvantaged youth workers are at the back of the queue along with the disabled and other stigmatised cohorts (for example, Roma people in the European context). There is an urgent need for a true Youth Job Guarantee, to replace the faux Youth Guarantee that was introduced in 2012. But then that would require abandoning the obsession with austerity and dysfunctional fiscal rules. The European Commission’s answer to the problem will be to have another ‘summit’ or two and issue plenty of statements replete with motherhood statements.Bill Mitchell – billy blog
A recurring theme among mainstream economic commentators is that the ageing societies that the Western nations are experiencing will eventually impose massive health and pension costs, which governments will be unable to afford. The claims of financial incapacity are, of course, fallacious....
Europe – the deliberate wastage of its youth continues
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
Yes, gold-standard mentality insanity.
ReplyDeleteBut Progressives are to blame too with their unprincipled "solutions" (e.g. government insurance of private, including privately created, liabilities).
In principle, NO ONE can properly object to principled solutions wrt fiat and credit creation. Then why are they anathema to so many? Who do they think they are worshipping with a system that loots and oppresses the poor? And is self-defeating anyway? Not the God of the Bible, both Old and New Testaments, for sure.
"This suggests that the systems which provide transitions between education and employment are not working effectively because the demand-side of the labour market is deficient."
ReplyDeleteRather retirements are being delayed due to nirp so there are insufficient vacancies for generation next...
Get the policy rate back up to 6% and watch what happens....
ReplyDeleteEven Calvin thought interest should be limited to 5%, Franko.
ReplyDeleteNot that I think the way central banks suppress interest rates is ethical; the ethical way, especially in the case of the ECB, would be equal fiat distributions to all citizens (Greeks and Germans alike) into their individual citizen accounts at the central bank itself.
Ok 5% then ... whatever...
ReplyDelete"equal fiat distributions to all citizens (Greeks"
ReplyDeleteNobody would ever go to work...
I'm not a Calvinist.
ReplyDeletePlenty of retired people work.
ReplyDeleteThey work because rates are zero...
ReplyDeleteThey work because rates are zero... Franko
ReplyDeleteIf citizens need money, the ethical ways to provide it are:
1) Equal fiat distributions to all citizens
and
2) According to need (e.g. increased Social Security payments).
Welfare proportional to account balance is precisely the wrong way to go.