Leader: Chronic joblessness has become the new normal across Europe

At home and across the continent, governments are failing to address the causes of youth unemployment.

The greatest achievement of the Keynesian governments that ruled postwar Europe was to banish the spectre of mass unemployment from a continent haunted by the memory of the 1930s. Any return to pre-war austerity was viewed as both politically and economically unthinkable. But today, chronic joblessness has become the new normal across Europe. Five years since the present crisis began, EU unemployment stands at 10.9 per cent (26.4 million) and youth unemployment at 23.2 per cent (5.5 million). As Danny Dorling writes on page 22, “Even where the youth unemployment rate is lowest, in Germany, unemployment accounts for one young adult in every 13; in Austria it is one in 11 and in the Netherlands one in nine. What we now call low youth unemployment rates were once the highest we had ever seen.”
 
In the UK, while a modest economic recovery is finally under way after three years of stagnation, youth joblessness rose by 15,000 in the most recent quarter to a dismal 973,000 (21.4 per cent). Of this total, 274,000 have been unemployed for over a year. The cost to the economy in higher benefit payments, lost tax revenues and wasted capacity runs into billions. For the individuals affected, the consequences are no less grave. History shows that those who suffer joblessness early in their lives are often permanently scarred, with the long-term unemployed working two months a year less, on average, and earning between £1,800 and £3,300 a year less after the age of 25.
 
While in opposition, the Conservatives rightly rebuked Labour for its failure significantly to reduce youth joblessness, which, even in the boom years, never fell below 12 per cent and began to rise as early as 2004. Yet in government they have made a bad problem worse. Upon entering office, the coalition cancelled the Future Jobs Fund (only for a subsequent Department for Work and Pensions study to show that it had been an unequivocal success, with a net benefit to the economy of £7,750 per participant) and abolished the Education Maintenance Allowance, which had ensured that thousands who might otherwise have joined the dole queue remained in full-time education. After youth unemployment rose to a record high of more than a million, the government responded by introducing the £1bn Youth Contract, promising employers wage subsidies worth £2,275 to take on 160,000 18-to-24- year-olds over the next three years. Since the programme was launched in June 2012, just 4,690 jobs have been created.
 
In the short term, a compulsory jobs guarantee – such as that promised by Labour –would help address the cyclical crisis, but in the long term more ambitious structural reform is required. This should not mean, as some on the right suggest, stricter curbs on immigration and cuts to pay and benefits for young people. A study by the National Institute of Economic and Social Research found that, between 2004 and 2010, youth unemployment among domestic workers rose fastest in areas with low numbers of migrants, and economists have consistently failed to find any evidence that the minimum wage deters employers from taking on the young.
 
Instead, the coalition needs to focus on improving the range and quality of apprenticeships available to the 50 per cent of teenagers who do not go to university, a group that was woefully neglected by the Blair and Brown governments. At present, just one in three large companies and one in ten small companies offer apprenticeships. Despite evidence that investment in skills is the greatest inoculation against unemployment, the number of youth apprenticeships fell last year. To reverse this trend, the government, with its fondness for outsourcing, could begin by making the offer of apprenticeships a condition of receiving public-sector contracts.
 
As the economy stutters back into life, prompting hyperbolic talk of “boom Britain”, the greatest danger is that those left behind by the recovery will be forgotten. If the country is ever to return to something close to prosperity, we cannot afford to continue to waste the potential of so many of our young.
Unemployed young people on the streets of Athens. Photograph: Getty Images.

This article first appeared in the 19 August 2013 issue of the New Statesman, Why aren’t young people working

Shaun Botterill/Getty Images
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All the Premiership teams are competing to see who’s got the biggest stadium

It’s not just a financial, but a macho thing – the big clubs want to show off that they have a whopper.

Here in NW5, where we live noisily and fashionably, we are roughly equidistant from Arsenal and Spurs. We bought the house in 1963 for £5,000, which I mention constantly, to make everyone in the street pig sick. Back in 1963, we lived quietly and unfashionably; in fact, we could easily have been living in Loughton, Essex. Now it’s all changed. As have White Hart Lane and Highbury.

Both grounds are a few metres further away from us than they once were, or they will be when White Hart Lane is finished. The new stadium is a few metres to the north, while the Emirates is a few metres to the east.

Why am I saying metres? Like all football fans, I say a near-miss on goal was inches wide, a slow striker is a yard off his pace, and a ball player can turn on a sixpence. That’s more like it.

White Hart Lane, when finished, will hold 61,000 – a thousand more than the Emirates, har har. Meanwhile, Man City is still expanding, and will also hold about 60,000 by the time Pep Guardiola is into his stride. Chelsea will be next, when they get themselves sorted. So will Liverpool.

Man United’s Old Trafford can now hold over 75,000. Fair makes you proud to be alive at this time and enjoying the wonders of the Prem.

Then, of course, we have the New Wembley, architecturally wonderful, striking and stunning, a beacon of beauty for miles around. As they all are, these brave new stadiums. (No one says “stadia” in real life.)

The old stadiums, built between the wars, many of them by the Scottish architect Archibald Leitch (1865-1939), were also seen as wonders of the time, and all of them held far more than their modern counterparts. The record crowd at White Hart Lane was in 1938, when 75,038 came to see Spurs play Sunderland. Arsenal’s record at Highbury was also against Sunderland – in 1935, with 73,295. Wembley, which today can hold 90,000, had an official figure of 126,000 for the first Cup Final in 1923, but the true figure was at least 150,000, because so many broke in.

Back in 1901, when the Cup Final was held at Crystal Palace between Spurs and Sheffield United, there was a crowd of 110,820. Looking at old photos of the Crystal Palace finals, a lot of the ground seems to have been a grassy mound. Hard to believe fans could see.

Between the wars, thanks to Leitch, big clubs did have proper covered stands. Most fans stood on huge open concrete terraces, which remained till the 1990s. There were metal barriers, which were supposed to hold back sudden surges, but rarely did, so if you were caught in a surge, you were swept away or you fell over. Kids were hoisted over the adults’ heads and plonked at the front.

Getting refreshments was almost impossible, unless you caught the eye of a peanut seller who’d lob you a paper bag of Percy Dalton’s. Getting out for a pee was just as hard. You often came home with the back of your trousers soaked.

I used to be an expert on crowds as a lad. Rubbish on identifying a Spitfire from a Hurricane, but shit hot on match gates at Hampden Park and Ibrox. Answer: well over 100,000. Today’s new stadiums will never hold as many, but will cost trillions more. The money is coming from the £8bn that the Prem is getting from TV for three years.

You’d imagine that, with all this money flooding in, the clubs would be kinder to their fans, but no, they’re lashing out, and not just on new stadiums, but players and wages, directors and agents. Hence, so they say, they are having to put up ticket prices, causing protest campaigns at Arsenal and Liverpool. Arsène at Arsenal has admitted that he couldn’t afford to buy while the Emirates was being built. Pochettino is saying much the same at Spurs.

It’s not just a financial, but a macho thing – the big clubs want to show off that they have a whopper. In the end, only rich fans will be able to attend these supergrounds. Chelsea plans to have a private swimming pool under each new box, plus a wine cellar. Just like our street, really . . . 

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 11 February 2016 issue of the New Statesman, The legacy of Europe's worst battle