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

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland