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Global Youth Unemployment Hits 35 Million As Recent Grads Lean On Parents
We’ve documented the pitiable plight of America’s recent college graduates on a number of occasions over the last several months. The Class of 2015 is officially the most heavily-indebted graduating class in the history of US higher education, as each student will leave college with an average debt load of more than $35,000. These proud new graduates will enter a job market where they’ll quickly discover that the idea of a US economic ‘recovery’ is, as Steve Wynn recently put it, “a complete dream”. In fact, high unemployment rates among recent graduates was recently cited by Moody’s as a contributing factor to the ratings agency’s decision to place some $3 billion in student loan-backed ABS on review. This state of affairs is made all the more perilous by the fact that nearly half of college graduates only manage to land a low-wage job which, as the OECD has recently shown, likely won’t pay enough to allow one’s family to subsist above the poverty line.
Now, the same OECD is out with a new report which looks at the world’s youth unemployment problem in an effort to determine why it is that 35 million people between the ages of 16 and 29 are jobless. Spoiler alert: it turns out $35,000 doesn’t buy a very good education.
From the OECD:
More than 35 million young people, aged 16-29, across OECD countries are neither employed nor in education or training (NEET). Overall, young people are twice as likely as prime-age workers to be unemployed.
The OECD Skills Outlook 2015 says that around half of all NEETs in the OECD are out of school and not looking for work and are likely to have dropped off the radar of their country’s education, social, and labour market systems (ZH: recall the case of America’s “vanishing worker”)
The report expands on the findings of the first OECD Survey of Adult Skills (PIAAC), published in 2013, and creates a detailed picture of how young people acquire and use their skills, as well as the potential barriers they face to doing both.
It shows that 10% of new graduates have poor literacy skills and 14% have poor numeracy skills. More than 40% of those who left school before completing their upper secondary education have poor numeracy and literacy skills.
Work and education are also too often separate worlds: less than 50% of students in vocational education and training programmes, and less than 40% of students in academic programmes in the 22 OECD countries and regions covered were participating in some kind of work-based learning at the time of the survey. Even young people with strong skills have trouble finding work. Many firms find it too expensive to hire individuals with no labour market experience.
All of the above helps to explain why two-thirds of graduates expect to rely on their parents for support after graduation. Parents, it turns out, have similar expectations.
Via Sallie Mae:
The survey and related infographic also reveal the expectation of financial support does not end after turning the tassel at college graduation. Approximately 65 percent of parents expect to support their children for up to five years after college graduation. The proportion of parents who think they will need to help out for more than two years jumped to 36 percent, double what a similar Upromise survey in 2014 reported. Sixty-eight percent of students expect financial support from their parents post-graduation. Nearly half of students, however, would be willing to pay rent to live back at home.
And it's no wonder, because paying rent to one's parents is likely to be far cheaper than renting a one-bedroom apartment with the latter option officially out of reach for anyone making minimum wage:
In sum, 35 million people aged 16-29 are unemployed across the globe thanks to a skills gap and weak demand. As discussed last week, this state of affairs has cost the global economy somewhere on the order of $4 trillion in GDP since the crisis. Indeed, the job market for young people is now so abysmal that two-thirds of recent graduates and their parents have come to terms with the fact that parental support will be a necessity for as many as five years post graduation.
For all of those recent graduates who aren't lucky enough to have majored in petroleum engineering and can't count on years of family support, there's always this option:
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At what point does responsibility (aka consequences) for being an adult revert to the adult?
<Never apparently.>
O-ba-ma... O-ba-ma... O-ba-ma...
Hey, they drank the Koolaid!
dunno about USA still but i'm living in Canada now and...
probably 70-85% of my graduating class in Finance is unemployed or underemployed 3 years later... hard to be sure because i don't really use much social media anymore (nor does anyone else, 'hey look at me, i'm back working at starbucks')
but it's pretty harsh
probably a quarter of them went back to school to train in accounting (most of the accounting grads at least have shitty entry level jobs) or even computer programming, engineering (mostly the finance/econ double majors)
when I say underemployed, I mean nothing remotely related to busness adminstration, let alone finance, and making basically about $30,000 USD a year less. probably about 70-85% of the students, which is a sample of about 210-230 students over two years of graduation from UBC and SFU
there's basically no entry level... goes straight from bookkeeping entry level only high school/basically diplima required straight to entry level analyst, advisor, etc that requires 3-4 years experience
i've heard toronto is the same way but that's even more anecdotal and i really don't know first hand
either way... fuck i wish i went into IT or accounting or hell, nursing... every nurse i know had a job before they graduated and pulls in 6-9 grand a month in overtime within months of graduating. sometimes even in the month before convovation lol and a big fuck you to every academic advisor in existance
There's a giant glut of IT people in Canada. So don't know why you added IT to your list of 'good' occupations. What basically happened is a good chunk of the IT sector in Canada went belly-up in the 2000s. And what was left was largely filled with temporary foreign workers. New grads have been locked out in the cold for pretty much the past decade in Canada's IT/ICT sector.
In engineering, the proven stats are just downright horrific; only roughly 1/3rd of the graduating classes are able to find the entry-level jobs that qualify them for engineering licensure (P.Eng.) in Canada. A full 1/3rd of the grads end up either unemployed or in occupations that don't even require a university degree. OSPE has done some wonderful work in the area.
And good lord, can't imagine any engineering employer hiring a finance/economics turned engineering grad. Usually its the engineers trying to go the other way, to leave engineering for finance/econ.
i dunno, most of the IT folks I know get relevant good paying jobs either in Van with all the app/social media start ups, or making games in either Van or MTL. or just admin, qa, network qa assistant, or something. i really don't know the names. but they're getting jobs at least remotely in their field that pay OK. i mean, i don't know if it's great or even decent but sure as hell a lot better than a lot of business fields right now :O but it's anecdotal... i mean, i have no problem hearing differing experiences haha :D
You must know a real interesting subset of people, because everyone I've talked to in Vancouver/Toronto in the IT job market reports that there's a huge amount of talent out there that simply is lost in the overwhelming number of resumes firms are receiving. Like 100 qualified applications for a simple sysadmin position. Start-ups that go out of their way to generate publicity often receive in excess of 1000 applications. The top grad from a CS school I am familiar with was only able to find employment with the university as a teaching assistant upon graduation. And pay, sheesh, 20 years ago it was pretty standard for a CS grad to receive an initial offer of 1/3 to 1/2 the average price of a house in the city in which they work. Today, well, $50-$60k is regarded as 'decent' for a CS grad, and that's but a mere 1/20th of the average house price in Vancouver.
probably just too small a sample :P (and we're a bit older so all the IT grads I know are mid 20s and did 3 yrs business or general uni in china already)
either way, i could easily believe it. and it just means that things are even worse than i thought haha
and don't even get me started on housing :P you watching the hockey game? news break just said van issued a record number of building permits lol prices weren't down but with volume slowing, was praying for some reprieve :O
I seem to remember it was "let my people go," not "my people deserve to be slaves."
I'm guessing you have found yourself on the recieving end of the generational robbery that is just coming to light over the last few years.
Row well & live #41
So where is the Department of Education (and the President that supervises it) in all this? They continue to let our youth take on "education" debt knowing the situation? What do they really do anyway? Where is the overwatch Congress?
Yes, students are responsible for their debt but the programs that allow it should have some expectations/controls. The collective $1T+ coupled with their unemployment is no longer their problem but ours. The system in Washington failed again.
One becomes an adult by voluntarily taking on the responsibilities of adulthood.
Until that time one is a child, no matter their physical age.
The cabin looks more comfortable than the average car.
The builder obviously a school of architecture graduate.
They're cheapo to build, too. All you need is a shopping cart and some old "Running for X Office" signs (they're water/weatherproof).
Heck, with some ingenuity, you can add windows using some plastic tupperware. Double the size of it, and you have enough room to use a laptop, and snag some free Wi-Fi from next to the dumpster at Starbucks!
The best part of it all? You own it, and don't have rent. Find somewhere to park it, and it's yours forever.
#Nosarc #Imserious #4Real
Send them on a children's crusade to Iraq
That's cruel ... beautiful, but cruel
No jobs...or no jobs they are willing to do.
Curious about China. Do they have minimum wage laws? Do they have unemployment insurance? Do they have "unemployment"?
Unemployment is a number that is meant to mean one thing but is calculated as something else. We know in America that unemployed does not take into consideration of those no longer looking for a job. With out government entitlements, how many can survive with no job? Minimum wage makes it illegal to hire for less, so we are forced to pick up the tab on them if no job at a legal wage is available. We have done the same for healthcare where legally hospitals cannot turn anyone away, so when they can't pay, the rest of us do.
Numbers are meaningless without context.
in China, new graduates with 0 experience are actually in high demand.... there are a lot of jobs designed specifically for students that have been graduated less than 1 year. it's a really big and formal deal because i have friends that tried to find jobs in Canada, and feel a lot of family pressure to go home because there are so many entry level jobs but they're nearing the end of their '1 year since graduation' mark. most chinese employees see zero experience as a positive because it means you have low demands and will work harder than those with experience/a sense of entitlement
it's the complete opposite from western firms, at least in canada, and how they view experience.
It's become musical chairs when it comes to jobs.
At least musical chairs, the fastest person to the next chair wins. The current employment market for young people is characterized by an almost complete lack of liquidity and appropriate skills and price discovery. It is just as much of a mal-employment as it is an unemployment problem.
"It's become musical chairs when it comes to jobs. "
Some of those chairs are reserved.
Children of the Oligarchy get the recliners and the office rollers and for diversity initiative lottery recipients.
Got a friend in Wyoming who says there are tons of jobs that pay over 20 per hour to start but no one wants to move there lol.
Move to Wyoming and live with those racists while actually being expected to work, or stay put making almost as much for doing nothing but watching TV.
Let me think...
I just don't know what to do!!!
THe railroads hire in at closer to $30 for welder jobs.
Yeah, being completely dependent on the price of oil for your livelihood and the rest of your career sounds like a great idea. I'm sure the price of oil could never bust, either in real or nominal terms.
Ive got tons of people that say there are TONS of great jobs everywhere but no one wants to take them. Somehow these jobs play a disappearing act when you actually go look for them though.
A guinea pig in every pot in every tiny home!
cannon fodder
"it turns out $35,000 doesn’t buy a very good education."
That may be true, but what's the difference? If there are no jobs, the education of the workforce is irrelevant.
"Approximately 65 percent of parents expect to support their children for up to five years after college graduation."
That's some severe enablement. Blame goes to the parents on that one. My expectation is that I will not support my children after 18.
This concept of "education" is just more of the same mindless shit they lay out for everyone to follow, brain dead as ever.
Real education is to understand how the world works and plan accordingly. Not just dream of some incredible life and then follow the study plan. Education that is provided is 50% indoctrination and 50% core studies. Neither will really provide a meaningful future. At best modern education is but a dull and basic tool that to have any value must be sharpened and highly leveraged. Colleges are full to the rim with people just following the plan, doing little more than is required to get through it, with grand hopes of job with huge future potential while offering even less challenge than school provided.
This is an uphill slog and slackers won't make it. Anything that might have been easy is past, and when mommy and daddy are dead and gone and the inheritance is spent, reality will come to bear down heavily.
The only degreed unemployed I know are lazy halfwits who attended the University of Phoenix or equivalent.
The US is quickly achieving its goal of emulating the socialist Euro paradise where yutes typically don't start working until they are mid/late 20's (but often live at home until almost 30...and people wonder why the demographics are collapsing..)
This. My parents thought I was going to be a nobel prize winning genius with a 6 figure job right out of college, so they wanted to make sure I had perfect grades. I did not start my first job until after I graduated high school. And even though I desperately search for a job that can actually pay bills (not just supplement the food and gas you need to drive to work), my parents love to treat me like a lazy, entitled, spoiled brat, even when I literally cannot afford to eat.
80 People possess the same wealth as 3.5 Billion others. I guess those 80 people are almost 44 million times more productive? They must be really working hard, maybe even not sleeping?
http://michael-hudson.com/2015/01/inequality-privatisation-of-the-earth/
Tolls booths are being erected onto the commons. Actual economic surplus of economies are being harvested to oligarchy, and hence the “little” people have to scrap for remains.
It is expected for kids to go to college, so they can then compete in the labor force, so that their labor buys something. Those that cannot get a degree will not make a living wage.
But, where does a wage earners labor value go? To get a degree, he/she has to go into debt. This makes the student a debt slave. To buy a house in a decent neighborhood, so they are not surrounded by riff-raff, the student now wage earner, has to go into debt.
Even if they buy a modest home, the usury on said home over 30 years will double or triple the price. Banker takes the usury for his profits, so this is quite a nice return for making keyboard entries and creating a debt instrument. Banker also gets first use of the “usury” as the interest always is paid up front on the loan. Typing on a keyboard to then harvest the population – it is good to be the King.
So, student is now yoked and harnessed with debt, just so they can be in a decent neighborhood, away from riff raff. Perhaps maybe there is a decent public school for their kids. Good luck with that, especially with third world “debt free” immigrants.
The access price for the American dream is very high indeed.
The former student, now laborer, has to trade their hours to make goods/services, and said goods/services go out into the market as prices. The prices then attract money from money supply.
Is there money in the money supply to pay the prices? The answer is no. The money is always disappearing. See above for how credit as money disappears and pays the banker first. The money system is also vectoring jobs overseas, so wall street oligarchs can take wage arbitrage, further screwing over American labor.
What about the money that ends up in the wallet of former student, now wage earner? That wallet money gets siphoned away to pay various payroll taxes; so between all the taxes and usury, maybe only 30 percent is left over to trade with their fellow wage earners.
So, the system is rigged. If only 30 percent of wallet money is available to trade with your neighbor, then one cannot trade evenly with their neighbor. The system is consuming their choices.
Welcome to the Gulag. Invisible slavery is still slavery.
Working hard has nothing to do with anything. It is stupid to keep maintaining that stance. Machines + Energy + Labor makes all goods. Labor is becoming a small fraction of the equation. Therefore the improvement in productivity and more efficient energy inputs is going to those 80 people. This is called the unearned increment of production. The unearned increment is a birthright that is being stolen. Through this theft of labor value and unearned increment, the shrinking middle class are paying welfare to the rich.
Looking at the top of the pyramid, those 80 are in finance, or in corporations tied to finance.
Private credit as money needs to be thrown onto the ash heap of history. Banker private credit is predatory in the extreme.
Sovereignmoney.eu
The real free cash flow is radically shrinking very quickly - the mass consumption - high volume - low margin - model isnt going to be perpetuated - the buying power isnt going to be there - when you see the average age for marriage going up it isnt about free sex availability or better partner decision making - it is about risk - there are many people who dont want the risk of kids and the whole marriage game - they deep down dont believe it is sustainable over 25 years necessary to get to the end game - high risk - and the other side which is financiable retirement
deadly cultural game coming!
If I own a hammer and you own a fist, who will be more productive at driving nails?
If I own a hammer and pay you to drive nails, who actually "owns" the production?
Until people strive to own the means of production and not simply the physical movements of their body, they will NEVER achieve the productivity that justifies the earning power many here seem to think they now deserve.
Look around. Technology is everywhere and virtually none of it is owned by the majority of the people, other than the consumer, nonproductive side of technology. Whatever gains in productivity are directly due to capital investments in technology. Those who seek to own it simply through education that enables them to use technology are quickly finding many of those skills obsolete unless they continue their education. Even then, most will refuse to do so unless their employer pays for it. We have surrendered our power for convenience and consumed the tripe that we are somehow entitled to wealth, just because we might show up.
I started a small business 30 years ago with nothing. I grew and advanced my business through hard work, but principally by investing my meager earnings in more tools and eventually cnc machinery. Throughout these years I have tried to encourage my employees to follow my foot steps. I have offered to train them in cad in cnc programming. I have explained to them that physical labor has limits to growth, that tools and technology are levers to advance themselves. Yet, in 30 years I have only had two who even tried.
I went to night school to learn autocad. I stayed up late at night teaching myself virtually everything from design to bookkeeping. Yet I have people who have worked for me for almost twenty years and are still working at the same bench.
For 20 years they have manned those benches and if you have not fired them that means they have been good employees who have made you money and are the bedrock of your company. Yet you could have taught them autocad or whatever and they could have quit and gone elsewhere looking for greener pastures thus constantly losing employees or paying exhorbitant wages to keep them. Just because they don't want to advance for whatever reasons in many cases can be a positve for the employer. Just be glad you didn't spend a bunch of cash training some guy who eventually turned into a competitor who knew your weaknesses and ran you out of business.
The big problem is there are too many going to college. Automation and new processes have whittled the blue collar workforce and employers have turned to the educated ranks and are using these tactics to trim them. It will create more "uneducated" jobs as the educated get pushed into the street and their unemployment rates go up. College should be reserved for those with the smarts and ambition to use that education and if the job market requires them. If a kid needs remedial courses in college it's blamed on the parents and or teachers not the fact that the kid shouldn't be there in the first place. We hear all this blather about our kids rank low on test scores for science and math and yet not a peep if there is a shortage of mathematicians and scientists. The education industry could care less about your education or learning skills, it's all about filling seats creating demand that creates the need for more schools that creates higher tuition as the law of supply and demand kicks in with more seats getting filled in ever expanding classrooms and new buildings with bigger raises and perks for those in charge. The situation will continue to get worse as we are bombared every day that your kid needs to attend college or be a loser and the education industry does encourges this message to keep the seats full and the gravy train, for them not you, running. The system keeps failing and will continue to fail as the citizenry employs the fox in the henhouse strategy and keeps going back to the people who caused the problem expecting them to fix what they broke.
All my friends, that have jobs, are hiring their kids, to work with them. America has fallen very fast.
Your friends sound wise to the fact that if they cannot help create opportunity for their children, that there is little-chance of them finding it on their own.
The economic landscape is radically different than what we experienced 20-30 years ago-- not so much true opportunity in this wasteland anymore for the unconnected.
If only "global" youth unemployment was 35 million...
...check your headlines, Tylers.
i'm a teacher in a semi-rural school district. trust me - IT'S OVER.
Yeeeeeeeeee Hawwwwwwwwwwwwww! Bring out the guns & moonshine!
TPP must pass to reduce global unemployment.
It will generate more jobs at less pay.
It's a win-win for all, except you.
You middle class pigs must be sacrificed.
For the greater good of humankind.
Thank you.
You move to a country, give birth to a child, dump them in a government school system while you spend 60 hours a week at work, come home ignore the kid, dump them infront of a Nintendo so that you dont have to talk to them, then suddenly they hit 25 , you get old, and you suddenly have time to talk to them and the first thing out of your mouth is a statement of disappointment.
Who should be disappointed with who at this point?
Its an epidemic of ignorance and gluttony.
They didn't have to dump out children at the first opportunity.
Can't feed em, then don't breed em.
Q: How do you get a feminist studies/gender studies/basket weaving/English major off of your doorstep?
A: Pay for the dang pizza!
Get off my lawn.
Have a free Corporate Protest Concert across the street!
Next stop: homeless
I'm just glad I secure my M.A. in Social Poetry Awareness just before demand starts to skyrocket! Woohoo!