Written by Gloria Trogo *
The recent economic crisis that erupted in 2008 had a deep impact on the young workers lives. Over 2007-2009 period 7.8 million young people were dismissed. In early 2010, 80.7 million young workers were unemployed. It is showed in the report of the ILO - Global Employment Trends for Youth 2010.
The connection between rising unemployment and economic crisis is evident. In the years pre-crisis (over the period 2000 - 2007) about 191 000 young people were dismissed a year worldwide. Only in 2009, that number reached 6.7 million. The same report points to the fact that the unemployment rate among youth has increased in the more developed countries. Rich countries have only 10% of young people in the world, but account for 45% of those who lost their jobs through 2007 and 2009. This relates directly to the fact that the crisis epicenter is in the imperialist countries, initially in the United States and more recently in Europe.
The International Institute for Labor Studies publication shows that the average youth unemployment rate is now increased threefold the rate in adults, affecting much more young people with low education. Some trends indicate the effects of such high unemployment rate, primarily the growing number of young people who neither study nor work. Secondly, the increase of precarious and informal jobs. Finally, the increase of - especially in EU countries - the risk of poverty among young people, which currently is greater than among adult.
Within this context, Europe has a peculiar situation. The unemployment rate among young people is the highest ever recorded since the regional estimates are available. This rate reached 17.7% in 2009 in developed economies and in the European Union. Compared with the pre-crisis years, the rate increased 3.5% in Europe. These are the largest annual increases in the unemployment rate already registered in the region. In France the rate increased from 17% to 24%. In Greece, from 24% to 30%. Spain is the worst case and expresses alarming figures; unemployment reaches 40% of young people. The ILO report also shows that in developed countries and in Europe the rate of youth unemployment is the fourth largest in the world. These rates are higher only in the European countries which do not belong to European Union, in the North African countries and in the Middle East.
The huge impact on the developed countries economy can only be explained by the nature of the current crisis. This is not a fleeting thing. The bankers themselves stated at the meeting sponsored by the Federal Reserve Bank (Fed) last week: "We will have to drag ourselves to get out of it," said Thomas Hoenig, president of the Fed of Kansas City. One of the main measures taken by governments around the world to combat the crisis, namely, the injection of public money in the economy, already faces criticism from the bourgeoisie themselves. Michael Mussa, former chief economist of the International Monetary Fund, said the central banks, with its aggressive attempts to manage the ups and downs of the economy, may have caused more harm than cure for the crisis. This is only a palliative measure; it does not resolve the structural crisis. To overcome the crisis it is necessary to burn capital and significantly increase the exploitation rate, this means loss of rights and achievements, closed factories and thousands of layoffs. When it is time of economic growth, entrepreneurs and bankers make money, but in the economic crisis they want workers bear the consequences and pay the bill for the crisis with their wages and rights.
The current recovering hasn’t meant a meaningful job recovery. A study by the International Institute for Labor Studies warns on the delay between economic recovery and jobs recovery. Raymond Torres, one of the authors of the report, warned that the policy of cost cutting present in the austerity plans may improve the fiscal balance in the short term, but gives rise to the risk of perpetuating the precarious employment in the long term.
It takes much longer to find a new job. The so-called long-term unemployment is characterized after 52 weeks or more without a job. Spain recorded the highest increase in this index, which rose from 12% to about 24% among youth. "We had never seen figures like these in such a short period and we fear that the latest years have created a generation of young people who will hardly be able to return to the labor market in ideal conditions," stated Steven Kaps, one of the authors of the ILO survey .
The connection between rising unemployment and economic crisis is evident. In the years pre-crisis (over the period 2000 - 2007) about 191 000 young people were dismissed a year worldwide. Only in 2009, that number reached 6.7 million. The same report points to the fact that the unemployment rate among youth has increased in the more developed countries. Rich countries have only 10% of young people in the world, but account for 45% of those who lost their jobs through 2007 and 2009. This relates directly to the fact that the crisis epicenter is in the imperialist countries, initially in the United States and more recently in Europe.
The International Institute for Labor Studies publication shows that the average youth unemployment rate is now increased threefold the rate in adults, affecting much more young people with low education. Some trends indicate the effects of such high unemployment rate, primarily the growing number of young people who neither study nor work. Secondly, the increase of precarious and informal jobs. Finally, the increase of - especially in EU countries - the risk of poverty among young people, which currently is greater than among adult.
Within this context, Europe has a peculiar situation. The unemployment rate among young people is the highest ever recorded since the regional estimates are available. This rate reached 17.7% in 2009 in developed economies and in the European Union. Compared with the pre-crisis years, the rate increased 3.5% in Europe. These are the largest annual increases in the unemployment rate already registered in the region. In France the rate increased from 17% to 24%. In Greece, from 24% to 30%. Spain is the worst case and expresses alarming figures; unemployment reaches 40% of young people. The ILO report also shows that in developed countries and in Europe the rate of youth unemployment is the fourth largest in the world. These rates are higher only in the European countries which do not belong to European Union, in the North African countries and in the Middle East.
The huge impact on the developed countries economy can only be explained by the nature of the current crisis. This is not a fleeting thing. The bankers themselves stated at the meeting sponsored by the Federal Reserve Bank (Fed) last week: "We will have to drag ourselves to get out of it," said Thomas Hoenig, president of the Fed of Kansas City. One of the main measures taken by governments around the world to combat the crisis, namely, the injection of public money in the economy, already faces criticism from the bourgeoisie themselves. Michael Mussa, former chief economist of the International Monetary Fund, said the central banks, with its aggressive attempts to manage the ups and downs of the economy, may have caused more harm than cure for the crisis. This is only a palliative measure; it does not resolve the structural crisis. To overcome the crisis it is necessary to burn capital and significantly increase the exploitation rate, this means loss of rights and achievements, closed factories and thousands of layoffs. When it is time of economic growth, entrepreneurs and bankers make money, but in the economic crisis they want workers bear the consequences and pay the bill for the crisis with their wages and rights.
The current recovering hasn’t meant a meaningful job recovery. A study by the International Institute for Labor Studies warns on the delay between economic recovery and jobs recovery. Raymond Torres, one of the authors of the report, warned that the policy of cost cutting present in the austerity plans may improve the fiscal balance in the short term, but gives rise to the risk of perpetuating the precarious employment in the long term.
It takes much longer to find a new job. The so-called long-term unemployment is characterized after 52 weeks or more without a job. Spain recorded the highest increase in this index, which rose from 12% to about 24% among youth. "We had never seen figures like these in such a short period and we fear that the latest years have created a generation of young people who will hardly be able to return to the labor market in ideal conditions," stated Steven Kaps, one of the authors of the ILO survey .
Young workers have been paying the highest bill of a crisis caused by the capitalists. The European working class has a standard of living much higher than in low income countries. These achievements are in decline since the 70s, but we face a qualitatively different attack on the workers’ status. To implement austerity plans and withdraw social rights is a pre-requisite for the bourgeoisie to sustain the fragile recovery which is underway.
For this reason the unemployment among young people is something of vital importance. It is the Capital struggling in order to guarantee that a new generation of people will be adapted to live much worse than their parents. Certainly there will be long-term effects on a youth who comes to the labor market facing an unemployment rate of 40% as it is the case in Spain. The ILO’s report states about a lost generation. There have already been signs of social risks increase associated with discouragement and prolonged inactivity.
The outcome of the economic crisis will be decided by the class struggle, no way out. This is what is shown by the large demonstrations that took place in Greece, most recently in France and other European countries. A general strike has already been called for the next 29th in Spain. It is advisable that the youth are allied to the workers and that they add their typical rebellion with the strategic strength of the workers in order to throw in the lap of the capitalist the crisis they themselves have created.
* Gloria Trogo is from the Youth National Secretariat of PSTU - Brazil.
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