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Thread: The Youth Unemployment Bomb

  1. #1

    Default The Youth Unemployment Bomb

    The Youth Unemployment Bomb

    From Cairo to London to Brooklyn, too many young people are jobless and disaffected. Inside the global effort to put the next generation to work

    By Peter Coy


    In Tunisia, the young people who helped bring down a dictator are called hittistes—French-Arabic slang for those who lean against the wall. Their counterparts in Egypt, who on Feb. 1 forced President Hosni Mubarak to say he won't seek reelection, are the shabab atileen, unemployed youths. The hittistes and shabab have brothers and sisters across the globe. In Britain, they are NEETs—"not in education, employment, or training." In Japan, they are freeters: an amalgam of the English word freelance and the German word Arbeiter, or worker. Spaniards call them mileuristas, meaning they earn no more than 1,000 euros a month. In the U.S., they're "boomerang" kids who move back home after college because they can't find work. Even fast-growing China, where labor shortages are more common than surpluses, has its "ant tribe"—recent college graduates who crowd together in cheap flats on the fringes of big cities because they can't find well-paying work.

    In each of these nations, an economy that can't generate enough jobs to absorb its young people has created a lost generation of the disaffected, unemployed, or underemployed—including growing numbers of recent college graduates for whom the post-crash economy has little to offer. Tunisia's Jasmine Revolution was not the first time these alienated men and women have made themselves heard. Last year, British students outraged by proposed tuition increases—at a moment when a college education is no guarantee of prosperity—attacked the Conservative Party's headquarters in London and pummeled a limousine carrying Prince Charles and his wife, Camilla Bowles. Scuffles with police have repeatedly broken out at student demonstrations across Continental Europe. And last March in Oakland, Calif., students protesting tuition hikes walked onto Interstate 880, shutting it down for an hour in both directions.

    More common is the quiet desperation of a generation in "waithood," suspended short of fully employed adulthood. At 26, Sandy Brown of Brooklyn, N.Y., is a college graduate and a mother of two who hasn't worked in seven months. "I used to be a manager at a Duane Reade [drugstore] in Manhattan, but they laid me off. I've looked for work everywhere and I can't find nothing," she says. "It's like I got my diploma for nothing."

    While the details differ from one nation to the next, the common element is failure—not just of young people to find a place in society, but of society itself to harness the energy, intelligence, and enthusiasm of the next generation. Here's what makes it extra-worrisome: The world is aging. In many countries the young are being crushed by a gerontocracy of older workers who appear determined to cling to the better jobs as long as possible and then, when they do retire, demand impossibly rich private and public pensions that the younger generation will be forced to shoulder.

    In short, the fissure between young and old is deepening. "The older generations have eaten the future of the younger ones," former Italian Prime Minister Giuliano Amato told Corriere della Sera. In Britain, Employment Minister Chris Grayling has called chronic unemployment a "ticking time bomb." Jeffrey A. Joerres, chief executive officer of Manpower (MAN), a temporary-services firm with offices in 82 countries and territories, adds, "Youth unemployment will clearly be the epidemic of this next decade unless we get on it right away. You can't throw in the towel on this."

    The highest rates of youth unemployment are found in the Middle East and North Africa, at roughly 24 percent each, according to the International Labor Organization. Most of the rest of the world is in the high teens—except for South and East Asia, the only regions with single- digit youth unemployment. Young people are nearly three times as likely as adults to be unemployed.
    * http://www.businessweek.com/magazine...5058743638.htm

    First link was broken at page 3*

    Page one of six. The whole world needs a Sputnik moment....
    Last edited by GGT; 02-03-2011 at 03:31 PM. Reason: *

  2. #2
    Pensions are definitely a problem. But I mostly blame young people for not being able to find work as opposed to blaming society. Some places rigid employment structures are to blame but in my little section of America I see rampant laziness and parents enabling their adult children as the reason for young joblessness.

  3. #3
    Stingy DM Veldan Rath's Avatar
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    Well, at least Lewk qualified his statements a little bit.

    Maine does make it difficult to hire teens. The restrictions in place (for better or worse) made it difficult for me to hire and schedule anyway. (Hours worked in a week, how late at night, etc...)

    BUT I will say that finding a younger person that will actually work when asked was also rare.

    WRT the article, the boomerang kids, my better half deals with these adults in his work.

    He is constantly hiring. Some of them is a case of: They don't want to work. The job is either beneath them or unemployment just looks better.
    Brevior saltare cum deformibus viris est vita

  4. #4
    Quote Originally Posted by Lewkowski View Post
    But I mostly blame young people for not being able to find work as opposed to blaming society.
    What about the current economy? I wasn't laid off from my first job as a 3D artist for being lazy, I was laid off because after the recession hit, business slowed down until a point was reached where they were no longer making enough money to employ everyone. I am currently employed of course, but not at a job that has any relation to anything I went to school for, nor does it pay enough to live independently, especially with college loan debts.
    . . .

  5. #5
    Quote Originally Posted by Illusions View Post
    What about the current economy? I wasn't laid off from my first job as a 3D artist for being lazy, I was laid off because after the recession hit, business slowed down until a point was reached where they were no longer making enough money to employ everyone. I am currently employed of course, but not at a job that has any relation to anything I went to school for, nor does it pay enough to live independently, especially with college loan debts.
    You are a boomerang. There will be many more in your predicament in the years to come. Time to unite and fight. Vote for jobs.
    Faith is Hope (see Loki's sig for details)
    If hindsight is 20-20, why is it so often ignored?

  6. #6
    Quote Originally Posted by Illusions View Post
    What about the current economy? I wasn't laid off from my first job as a 3D artist for being lazy, I was laid off because after the recession hit, business slowed down until a point was reached where they were no longer making enough money to employ everyone. I am currently employed of course, but not at a job that has any relation to anything I went to school for, nor does it pay enough to live independently, especially with college loan debts.
    Part of the problem is the seniority mentality, where the people who get fired during bad times are the more recent hires, instead of the worst workers. Needless to say, new hires are usually young people, which means they suffer the most from recessions.
    Hope is the denial of reality

  7. #7
    The senior mentality? Or do you mean preferential treatment for labor unions of the past?

    These days there's a newfound appreciation for an ancient work arrangement, the apprenticeship, because it greases the transition from learning to doing. Germany and Austria experienced milder youth unemployment in the global downturn partly because of blue-collar apprenticeship programs, says Stefano Scarpetta, deputy director of the directorate of *employment, labor, and social affairs at the OECD in Paris. Last year, the International Labor Organization says, Germany's youth unemployment rate was 13.9 percent, compared with a Europe-wide average of 21.2 percent and 21 percent in the U.S.

    In an update on the apprentice idea, countries such as the Netherlands encourage university students to gain work experience while enrolled. Scarpetta says 70 percent of Dutch youth ages 20-24 are getting some work experience. By contrast in Italy and Portugal only about 10 percent work while in school. The Netherlands' youth unemployment rate is just 11.2 percent.
    Right or wrong, the free-market argument hasn't carried the day: Britain and New Zealand actually raised their minimum wages during the global downturn. And the argument for the negative effect of worker protections hasn't convinced Austria and Germany, which have strong employment regulation and yet have had healthier job markets in the past two years than countries such as the U.S. with fewer worker protections. Thea Lee, deputy chief of staff at the AFL-CIO, argues that unions can't be blamed for high youth unemployment: "Business likes to have workers with no power, no rights, no protections."

    That's a bit harsh. After all, company executives are squeezed too, and hiring neophytes is costly. Joerres, the Manpower chief, blames the faster pace. "Businesses did more training when the life cycle of their products and employees was longer," he says. "Now if the life cycle of your product is 18 months and it takes 12 months to bring your employee up to speed, you lose."

  8. #8
    Regardless of the acronym or clever title, there are millions of youth across the globe that want and need to find employment. Some might be content in a part-time seasonal job to earn money and experience, while others are looking for entry level career positions. They all want the prospect of moving up the proverbial ladder of success and income.

    What makes it frustrating or difficult for them is that the playing field isn't based so much on ability or potential, but left-overs of croneyism or nepotism. That's a real buster for ideological youth, learning the Ivy League grad has an automatic leg up, children of executives have an easier time landing internships, kids from wealthy families can study abroad in China or Europe easier than their poorer peers, who your parents know can get you hired, the more important people you know means the faster you'll get hired, even being courted before graduation. It's the oldest form of social networking, but it wasn't supposed to be this way.

  9. #9
    The current economy is very much to blame. Even when the jobs are there, who is going to be considered first? Some kid who just graduated from college, or someone with a bit more 'real world' experience? Sure, the kid won't expect as much pay, in theory. But the experienced worker won't need as much ...uhm... 'orientation' (to sum up all he brings into one word) into the workplace. I suspect the experienced worker more often than not get the job. The kid can boomerang back home until things get better.
    The worst job in the world is better than being broke and homeless

  10. #10
    Knowing my friends, everyone on this site should be glad they won't be able to find work.

  11. #11
    The issue of workplace training is definitely a factor. It's hard to train people, but a lot of youngins also lack a certain sense of business savvy and workplace etiquette. This hits very hard on those from disadvantaged backgrounds-

    NYTimes Opinion- http://opinionator.blogs.nytimes.com...business-suit/

    January 28, 2011, 8:05 PM
    Beyond the Business Suit

    By DAVID BORNSTEIN

    Earlier this week, I wrote about Year Up, an organization that is unusually successful at preparing young adults from disadvantaged backgrounds for jobs in big companies like banks, investment houses, health care providers and technology firms. What became clear to me while researching the story was that workforce development no longer means giving people job skills; it means giving them the ability to navigate a career in a professional environment. This isn’t knowledge you’re born with. You pick it up from family and friends and, if you’re lucky, from mentors. Oddly, for something so important, it receives little emphasis in schools and colleges; many job training programs gloss over it.


    Operating in a different culture can be stressful. When I first traveled to Bangladesh as a journalist, I embarrassed myself more times than I care to remember. Whether it was declining food that was offered, opening a gift in front of my hosts, or using my left hand to pass a plate, I had to be repeatedly corrected — and taught cultural norms by friends and translators. Thankfully, they cared enough to be honest with me.

    But what happens if your success in life depends on mastering cultural norms that no one brings to your attention? Or, worse, that actually go against your upbringing? William Julius Wilson has observed that inner city youths in the United States are at a disadvantage whenever they seek jobs that involve making eye contact with strangers. To survive on the street, they learned to avoid eye contact.

    In the past, this wasn’t a big problem. A young adult could count on finding work in a factory or a local business where co-workers came from the same community and shared the same background. Today, corporations are crossroads; they bring together people of different ethnicities, religions, political affiliations and sexual orientations. What we call the professional culture is a kind of dial tone that allows everyone to connect. For better or worse, the social norms, the courtesies, the standardized costume — business attire — serve to smooth out differences, simplify interactions, and avoid conflicts so work can get done.

    The real problem is that, while proficiency in the professional culture is now linked to career success at the global level, the distribution channels for these skills have not been democratized. It’s still a game that favors insiders. That’s partly because the value of cultural skills are hard to evaluate, unlike reading and math scores, so they haven’t been prioritized — and they are tough to teach. In fact, they need to be modeled as much as taught. They often touch on sensitive issues, which is why Year Up provides extensive training to its staff in the art of giving feedback.

    Year Up’s founder, Gerald Chertavian gave me an example: “If a young man came to me and said, ‘Gerald I need to ‘ax’ you a question,’ I have to tell him honestly, ‘If you go into a Fortune 500 company and say that, there will be a whole set of assumptions about who you are. I’m making no moral judgment. But if you want to act on that stage, there are norms for how language is used and you don’t want to give someone an opportunity to make an assessment about you that isn’t linked to your ability or your brains. We’re not asking you to be someone else. All we’re saying is that if you want to act on that stage, we’re going to give you the knowledge you need to succeed.

    What’s deeply important is how you communicate that information to a young person,” he added. “It has to come from a place of caring, not authoritarian dictate. How you do it will determine whether they say, ‘I get it. I get to act on several stages depending on how I choose to use vernacular. I’m inheriting new stages to play on. I’m not giving anything up.’ ”

    The real world isn’t nearly as frank. Managers are often too busy to tell young people about what aspects of their behavior or communication style could help, or hinder, their career prospects. When companies dismiss junior employees, it’s often without explanation. That’s why the pre-job feedback is so valuable.

    Feedback works best when it’s about helping another person to grow. If it becomes about expressing your emotions, it’s rarely effective. Chertavian recalled talking to a student who had come in late a number of times. “I got frustrated with this young man and I said, ‘Don’t you get it? We’re giving you an opportunity and you’re late and it’s just not appropriate. You can’t be late.’ ”

    “You could almost hear a pin drop in the room,” he recalled. “And as I walked out, my staff member said, ‘Gerald, you didn’t do a good job there.’ He said, ‘As soon as your voice hit that tone, it became the parent lecturing the child and the authority figure imposing authority. It totally didn’t do what you wanted it to do.’ ”

    But even if young people master professional skills — will it make any difference in this economy? One reader, Professor Edwin Wellselsy, didn’t think so. He wrote: “[T]he leading cause of massive unemployment among youth is lack of jobs, any jobs,” he said. Everything else, he suggested, was incidental.

    That may be partly true, but it overlooks two important qualifiers: the recession hasn’t hit all workers equally — and it isn’t permanent. Workers in manufacturing, construction and retail were hit particularly hard. But, as I noted, the unemployment rate for college graduates is only half the national rate. And while the low-wage, low-skill jobs that were eliminated during the recession are unlikely to come back, other kinds of jobs will open up when the economy recovers. As baby boomers retire, for example, U.S. companies are expected to face a shortage of 14 million college-educated workers over the next decade.

    Moreover, in a 2009 survey of close to 1,200 companies and organizations, 79 percent reported that they were currently facing a “skills gap” — one that they would have to fill eventually. The industries expected to grow the most are education and health services, and management, scientific and technical consulting services.

    That’s why Year Up prepares students for work in these areas. Even during the recession, it managed to expand and find internships for every student who enrolled. It focuses on jobs that require problem solving, critical thinking and complex communication — jobs that are difficult to outsource, like customer service, and jobs in finance and health care, where confidentiality considerations militate against sending them overseas.

    Year Up also demonstrates how important it is for job training programs to work closely with front line managers who supervise interns and new recruits. In late fall, for example, some of its corporate clients reported talent shortages in their I.T. “quality assurance” units. (A quality assurance specialist develops and runs computer scripts to test software and identify defects.) Within weeks, Year Up created a quality assurance sub-track and the first cohort of interns in this track will start working next week. “I think Year Up operates as close to market time as is possible in an educational setting,” notes Daniel Rabuzzi, who directs operations and strategy for Year Up’s New York office.

    As more of its graduates spread out into the professional world, Year Up is monitoring their progress. In a 2009 survey of graduates who were six years out of the program, it found that a third of respondents had obtained a college degree or certificate (studying at night and on weekends) while another 10 percent said they were on track to get one within the year. Only 11 percent of students had not pursued further education. This is all good news. What remains to be seen is whether Year Up’s professional training model can open up not just a few thousand career paths per year, but tens or hundreds of thousands. I’ll be following the program as it pursues new partnerships with community colleges — that’s where the majority of low-income students begin higher education — so that’s where big changes will have to come.

  12. #12
    Quote Originally Posted by Dreadnaught View Post
    The issue of workplace training is definitely a factor. It's hard to train people, but a lot of youngins also lack a certain sense of business savvy and workplace etiquette. This hits very hard on those from disadvantaged backgrounds-
    How would they know if, never mind any sort of response, they don't even send you a thank you email for submitting the application anymore?

  13. #13
    Economy added 36,000 jobs last month while the unemployment rate shrunk.

  14. #14
    What, nothing?

    Everyone is resigned to this now?

  15. #15
    Sad, isn't it? Most people won't pay attention until they are directly affected. I prefer a proactive approach but I'm certain I am in the minority.

    It’s no longer true that having a college degree guarantees that you’ll get a good job, and it’s becoming less true with each passing decade
    Faith is Hope (see Loki's sig for details)
    If hindsight is 20-20, why is it so often ignored?

  16. #16
    A good job? What's a good job nowadays? I can't even find a job at wal-mart.

    BTW, I can't believe that Paul Krugman wrote this article.

    Edit: Just read the article. Anyway, looks like he is about 10 years behind, but with big solutions. I am for increasing bargaining power as general description of labor's relationship with capital, but not in terms of things like unions, for instance.

    Even creative jobs aren't being done because there's too little demand and/or the costs are too high.

    Free trade is all about relative advantage, and when the only relative advantage you have is that you have a higher wage and the other country has a lower wage, guess who gets hurt?

    Labor does not necessarily benefit from free trade.

    Consumers always do, yes, but consumers <> labor.

    So does this then become something that we can somehow protect? Perhaps we can try, but only when there are clear goals and paths to get us there.

    One avenue that we haven't done enough I think in is to put taxes on imports from polluting countries or countries with poor worker standards.
    Last edited by agamemnus; 03-08-2011 at 12:29 AM.

  17. #17
    Quote Originally Posted by agamemnus View Post
    One avenue that we haven't done enough I think in is to put taxes on imports from polluting countries or countries with poor worker standards.
    Yeah, but the likes of Dread and Loki call it dirty names like protectionism. It's a shame we've been brainwashed into believing it is bad for corporations to be nationalistic.
    Faith is Hope (see Loki's sig for details)
    If hindsight is 20-20, why is it so often ignored?

  18. #18
    Quote Originally Posted by agamemnus View Post
    Labor does not necessarily benefit from free trade.

    Consumers always do, yes, but consumers <> labor.

    So does this then become something that we can somehow protect? Perhaps we can try, but only when there are clear goals and paths to get us there.

    One avenue that we haven't done enough I think in is to put taxes on imports from polluting countries or countries with poor worker standards.
    It's not like they'd retaliate or something. And FYI, all workers are also consumers.
    Hope is the denial of reality

  19. #19
    Quote Originally Posted by Loki View Post
    And FYI, all workers are also consumers.
    How does that at all relate to the comment that consumers are not the same as labor?
    Faith is Hope (see Loki's sig for details)
    If hindsight is 20-20, why is it so often ignored?

  20. #20
    My youngest son has started talking about this, and he's only 15. He has a list of things he want so do when he grows up. Lately he's said he might want to be a History teacher....not just because he loves history (especially American and military history) but he's got a fantastic history teacher now. Young and enthusiastic guy, working on his PhD while teaching high school.

    The kid is already worried that a liberal arts degree won't be worth much, let alone going into education. He sees all the lay offs and budget cuts, how teachers are disrespected and maligned lately....and an older brother who dropped out after one semester until he knows which way to go. The older kids come home from college (on break now) and talk about how dismal the future looks after graduation. Plenty have a degreed older sibling that boomeranged back home because they couldn't find a job in their field. Waiting tables. Waiting.


  21. #21
    Quote Originally Posted by GGT View Post
    My youngest son has started talking about this, and he's only 15. He has a list of things he want so do when he grows up. Lately he's said he might want to be a History teacher....not just because he loves history (especially American and military history) but he's got a fantastic history teacher now. Young and enthusiastic guy, working on his PhD while teaching high school.

    The kid is already worried that a liberal arts degree won't be worth much, let alone going into education. He sees all the lay offs and budget cuts, how teachers are disrespected and maligned lately....and an older brother who dropped out after one semester until he knows which way to go. The older kids come home from college (on break now) and talk about how dismal the future looks after graduation. Plenty have a degreed older sibling that boomeranged back home because they couldn't find a job in their field. Waiting tables. Waiting.

    The unemployment rate for college grads is still significantly lower than for non-grads. As the economy improves (and recent figures paint a very optimistic picture), it's the skilled jobs that will recover first.

    You should also tell your son that he doesn't need a Ph.D. to teach a class in school. A masters in either History or Education would be sufficient, and the government is more than happy to subsidize the graduate education of people who promise to be teachers.
    Hope is the denial of reality

  22. #22
    I'm not talking technical indicators. Just sharing some impressions from the young people in my life, raised with the hope that "You can Be anything you want --- get the education and employment will follow!" I don't think you realize how heavy the push is for math and science in our schools, starting in 3rd or 4th grade.

    We're lucky enough to still have great music and art departments (orchestra, string symphony, jazz band, marching band, choir, ensembles, drama) but the inner city schools don't. When budgets get tight those are the first things to go. Students who thrive in English, Literature or History don't have the same number of advanced classes (or AP offerings) as Maths.

  23. #23
    Quote Originally Posted by Being View Post
    How does that at all relate to the comment that consumers are not the same as labor?
    I guess he's saying that people who work consume. And yeah, Loki, they won't retaliate, 'cause we have our ways; i.e.: charming good looks and a fake British accent.




    Quote Originally Posted by Loki View Post
    The unemployment rate for college grads is still significantly lower than for non-grads. As the economy improves (and recent figures paint a very optimistic picture), it's the skilled jobs that will recover first.
    1) That's just college grads, not recent (let's take a 5 yr horizon) college grads.

    1b) Have you noticed the disparity in employment (participation) among recent college grads in terms of gender?... I noticed this a few months ago when I looked at B.L.S. data. Not looking good for males. Edit: It's not too easy to see in the data anymore, but it's there... I can't seem to find the categories I thought I saw before. (not just over/under 18)

    2) Skilled jobs will not recover first. The jobs in demand will recover first, but are those necessarily skilled jobs?
    Last edited by agamemnus; 03-08-2011 at 05:19 AM.

  24. #24
    Besides, the way they report Unemployment rate is truly messed up. Once people stop looking and give up (or focus on maybe starting their own small business) they're not included in the numbers. What everyone really wants to know is the Employment rate, who's hiring, how many jobs are available, and where.

  25. #25
    Quote Originally Posted by agamemnus View Post
    A good job? What's a good job nowadays? I can't even find a job at wal-mart.
    aggie, you're in MA, right? I don't recall you saying what your degree is in, or how long ago you graduated. If that's not too personal.

    Internships are so common now they're almost required. From what I've been told, college students are competing for unpaid summer internships as early as sophomore year. To get an early leg up into a large corporation. Then there's the preference for employee's children, both in scholarships and internships and subsequent hiring.

    My sister's parent company is J & J....they treat employee's kids quite well. Also university hospitals for reduced tuition, sometimes even free.

  26. #26
    Quote Originally Posted by agamemnus View Post
    1) That's just college grads, not recent (let's take a 5 yr horizon) college grads.

    1b) Have you noticed the disparity in employment (participation) among recent college grads in terms of gender?... I noticed this a few months ago when I looked at B.L.S. data. Not looking good for males. Edit: It's not too easy to see in the data anymore, but it's there... I can't seem to find the categories I thought I saw before. (not just over/under 18)

    2) Skilled jobs will not recover first. The jobs in demand will recover first, but are those necessarily skilled jobs?
    1) The job figures for people of the same age who don't have a college degree aren't exactly better.

    2) A lot of the unskilled jobs (except for ones like construction) have been lost for good. They're not coming back. The recovery is going to be on the back of skilled jobs.

    As for creating new trade barriers, read up on Smoot-Hawley. We'd be violating our WTO obligations, which would undermine the WTO. Without an effective WTO, it would be far more difficult to get other countries to not level unfair trade restrictions against American products.
    Hope is the denial of reality

  27. #27
    Maybe you would like to explain our staggering and ever-increasing trade imbalance and why the WTO doesn't do anything about it.
    Faith is Hope (see Loki's sig for details)
    If hindsight is 20-20, why is it so often ignored?

  28. #28
    It's not the WTO's job to deal with trade imbalances; its job is to enforce agreed upon trade practices. Why not ask why the WTO isn't preventing cancer?
    Hope is the denial of reality

  29. #29
    Quote Originally Posted by Loki View Post
    It's not the WTO's job to deal with trade imbalances; its job is to enforce agreed upon trade practices.
    I consider a lack of environmental regulation to be a trade barrier.
    Faith is Hope (see Loki's sig for details)
    If hindsight is 20-20, why is it so often ignored?

  30. #30
    Good thing the only one who takes your views seriously is you (and I'm not even convinced of that).

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