Saturday, April 27, 2013

The Number of Young People Out of Work...

...globally is nearly as big as the population of the United States, says Economist:
OECD figures suggest that 26m 15- to 24-year-olds in developed countries are not in employment, education or training; the number of young people without a job has risen by 30% since 2007. The International Labour Organisation reports that 75m young people globally are looking for a job. World Bank surveys suggest that 262m young people in emerging markets are economically inactive. Depending on how you measure them, the number of young people without a job is nearly as large as the population of America (311m).
Since markets clear, we know that other factors must be behind the huge number of jobless. They include:

1. Governments unemployment payments, which result in more unemployed. Pay people not to work and they won't.

2. Minimum wage laws. Raise the minimum wage law above the marginal revenue productivity of some workers  and those workers will become unemployable.

3. Put into place other regulations which make it difficult to know the cost of hiring (or firing) a worker (see Obamacare and eurozone laws on firing) and employers will refrain from hiring.

1 comment:

  1. Don't worry, there will be a big Europe-centric war for all these lazy larry's to fight in soon enough. They'll announce it as The Great Stimulus War.