Youth unemployment is shockingly high in Greece, Spain, and Italy as shown by Europe’s Most Tragic Graph by The Atlantic.
Young workers in Greece and Spain are facing an absolutely egregious work drought, where half of high-school and college-graduates ready to find a job aren’t finding one. And 55% isn’t the ceiling. Both economies are shrinking and unemployment is a lagging indicator — as Americans have learned, the rate can keep going up after an economy technically starts growing. This economic tragedy can easily become a social disaster as young promising people either leave their country to work somewhere else or else turn to illegal or violent activities to protest policies wrecking their economies or lash out against a country that’s leaving them behind.
EU Wants to Ban Youth Unemployment
Looking for a reason for the rise of the neo-Nazis in Greece? Look no further than economic depression and over 50% youth unemployment. So what to do about it?
Courtesy of Google translate from German of Frankfurter Allgemeine, please consider EU Wants to Ban Youth Unemployment.
The European Commission wants to oblige EU countries to all people under 25 to secure a job. How states are to implement the guarantee, it will not betray.
The Member States of the European Union should guarantee all people aged less than 25 years in the future, within four months some form of employment. These governments should issue a so-called youth guarantee, as stated in a regulatory package that wants the department responsible Commissioner László Andor imagine this Wednesday in Brussels.
It would be nice if the economic illiterates in the nannyzone would stop and figure out why youth unemployment is so high.
The primary answer is work rules, pension rules, and other rules are so harsh that companies simply do not want to hire workers.
France is heading down the same idiotic path with an economically insane proposal by French president Francois Hollande “Make Layoffs So Expensive For Companies That It’s Not Worth It”
Any clear-thinking person should quickly realize that if companies cannot fire workers they will be extremely reluctant to hire them in the first place.
Thus, it should be no surprise to discover French Unemployment Highest in 14 Years (And It’s Going to Get Much Worse).
Moreover, Italy, Spain, France, and Greece are already suffering from massive public sectors. Those sectors need to shrink, not expand.
In France, Government spending amounts to 55% of total domestic output. For discussion, please see Hollande’s Honeymoon is Over; 54% of Voters Unhappy; Unions Promise “War” in September.
Now the nannycrats want government to take over still more of total output instead of shrinking it, at a time when every country in the EU is struggling to reduce deficits.
Insanity does not begin to describe the stupidity of this proposal, which I might add (the EU offers no way to implement in the first place).
Mike “Mish” Shedlock
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About The Author
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit Sitka Pacific’s Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.
You are currently viewing my global economics blog which typically has commentary every day of the week. I am also a contributing “professor” on Minyanville, a community site focused on economic and financial education. Every Thursday I do a podcast on HoweStreet and on an ad hoc basis contribute to many other sites.
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