Two factors are said to play a major role in this occurrence. Number one, the slow economy in the West has shown a reduced demand for labor, and it is a lot easier to put off hiring young people than it is to fire older, and more veteran workers. Number two, population growth is fastest in countries with emerging economies, which tend to have very dysfunctional labor markets. Essentially, this means that more and more young people have reached an age where they can and would like to work, but their own country's system isn't able to facilitate the surge of "fresh blood."
What are some of the solutions that could help reignite growth and get the ball rolling again for young people? One idea is to reform labor markets and allow for some deregulation. Countries that have strict labor markets often have an abundance of cartelized businesses, high taxes on hiring, and strict rules about firing. All of these essentially make it hard for young people to find places to work or start up their own businesses, and that's why having a briefly "looser" marketplace would be beneficial. The second idea is to change the connection between education and the workplace. More specifically, it's to change the notion that the government needs to just ensure that more people graduate from college and get their respective degrees. Just because a person has a degree, that doesn't ascertain that they will be more successful or employed. Our country has recently shown a huge trend of this, after all. A larger concern should be making sure that people receive substantive educations and training that will be directly helpful and useful in the workplace/economy at large. This includes changing and improving vocational programs and apprenticeship-type programs as well.
The youth of the world may be struggling now, but hopefully new jobs will be created in fields that may not even exist yet. We'll have to make the jobs of the future!
6 comments:
Yes, hopefully new jobs will be created in the future for the worlds current unemployed youth. I found the fact that the U.S population is equivalent to the total number of unemployed to be quite shocking. I agree that developing countries do need reform regarding their labor systems, but what can be done for nations which are stagnant in terms of economic growth? These areas are often the places with the harshest living conditions, and I wonder course of action could be taken to combat this. What type of solution could solve this issue, without stretching the U.S' resources to far.
It is unfortunate that even as the economy struggles to improve, the number of youths unemployed has risen. Though the minimum wage may have risen in some areas of the United States, it also gives greater incentive for businesses to fire more young people because they to take into account production costs. Without enough opportunities for the youth to get involved in work, it is inevitable that unemployment will occur.
Congress has various ideas on how to stimulate the economy and get the people working again, some with more success than others. The first idea is interesting but I doubt it would be able to get through Congress at the moment. Important issues like Syrian violence, CIA money to Afghanistan, and Boston bombings investigations are taking center stage in America right now.
The second idea would be beneficial if the government chooses to pump more money into the educational system, and if it actually has the money to work with (higher taxes anyone?). So both solutions are testable but ultimately will probably not be used at the moment. Due to the slow economy, the government is limited by what it can accomplish and cannot. The public and private sectors both need attention though.
Overall, I think there are multiple solutions to solving the problem, which economists will have fun debating with themselves. In all reality, I am not exactly hopeful that new jobs will suddenly be created soon until President Obama is done dealing with the heavy workload he has right now. But I want to stay optimistic that there will eventually be more jobs available as long as the economy continues to recover, albeit slowly.
P.S. We also need to watch out for unemployment fraud. Not everyone who says they are unemployment are actually trying to get employed.
It worries me that there are so many unemployed youth. It seems like your article was not just talking about uneducated people but those who went to university as well. Especially considering that more and more people go to university now, it seems like perhaps a degree won't be worth very much soon. I find it interesting, that it says "companies have continued to complain that they cannot find young people with the right skills." So, it's not really so much that there's too many people and not enough jobs, but actually people aren't learning the right things. I wonder how we can use this knowledge to direct our education the right way in the next few years.
It worries me that there are so many unemployed youth. It seems like your article was not just talking about uneducated people but those who went to university as well. Especially considering that more and more people go to university now, it seems like perhaps a degree won't be worth very much soon. I find it interesting, that it says "companies have continued to complain that they cannot find young people with the right skills." So, it's not really so much that there's too many people and not enough jobs, but actually people aren't learning the right things. I wonder how we can use this knowledge to direct our education the right way in the next few years.
The problem that I've also observed is that young people have less experience and are therefore less likely to be hired. I think that that's probably a general problem, and not just an economic downturn one. Still, if you think about it, coming out of college with just a degree nowadays is merely adequate. You have to have job experience to be a real potential candidate. Which it certainly isn't a bad thing to get a job before or during college, it is just an indicator of how competitive the job market is becoming that it is now pretty much expected.
30% seems really high, but in reality my question is how many actually are people that need to get a job. A person can be considered "unemployed," but not actually need a new job. I don't think all the people at the age of 15 actually need a job. Maybe they're looking for life experience, but payless internships can work just as well. Maybe I'm being a bit skeptical, but I believe if someone truly wants something they'll be able to get it. If someone really wants a job they will get it. People with degrees will be able to find the job they want. There is no reason to keep a person who has less credentials than one who has better ones. It just doesn't seem logical. This might come off harsh, and I might regret this if I end up not finding a job, but this is what I think.
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