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Youth Unemployment Could Prolong Eurozone Crisis, Christine Lagarde Says

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http://www.theguardian.com/business/2013/dec/10/youth-unemployment-eurozone-crisis-christine-lagarde-imf

Christine Lagarde, the managing director of the International Monetary Fund, has warned that long-term prospects for growth in the eurozone look bleak unless politicians act urgently to stoke domestic demand and tackle youth unemployment.

After months of relative calm in financial markets, and with Ireland due to end its painful bailout programme and end its reliance on the IMF this weekend, some European politicians have declared the worst to be over for the 17-member single currency zone.

But speaking at the European Economic and Social Committee in Brussels, Lagarde warned against prematurely declaring an end to the economic crisis.

"Can a crisis really be over when 12% of the labour force is without a job? When unemployment among the youth is in very high double digits, reaching more than 50% in Greece and Spain? And when there is no sign that it is becoming easier for people to pay down their debts?"

She warned that high youth unemployment could jeopardise the economy's ability to grow in the future, by creating a generation of young people without the skills to take their place in the jobs market. "What is at stake is Europe's potential for growth in the future," she said.

"Unemployment at a young age means a lack of on-the-job training, depreciating skills, and possible withdrawal from the labour market. Experience tells us that long spells of unemployment lead to a less productive workforce down the road."

Osbourne has announced he's tackling it by increasing the retirement age...

Hard to see how they can tackle this without major structural reform in employment, perhaps moving to a 3 or 4 day week to create some new jobs?

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http://www.theguardian.com/business/2013/dec/10/youth-unemployment-eurozone-crisis-christine-lagarde-imf

Osbourne has announced he's tackling it by increasing the retirement age...

Hard to see how they can tackle this without major structural reform in employment, perhaps moving to a 3 or 4 day week to create some new jobs?

A little off-topic but the student protests tomorrow might be worth watching. I saw it on Channel Four News last night. According to the internet students have been protesting around the country over privatisation of the education system and the media has been almost completely silent. The policing of building occupations has been aggressive with accusations of it being poltically motivated.

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http://www.theguardian.com/business/2013/dec/10/youth-unemployment-eurozone-crisis-christine-lagarde-imf

Osbourne has announced he's tackling it by increasing the retirement age...

Hard to see how they can tackle this without major structural reform in employment, perhaps moving to a 3 or 4 day week to create some new jobs?

It does annoy me that politicians seem to think that the simple answer to pension problems is to increase retirement age, without appearing to consider the consequences for the jobs market, and in particular, youth unemployment. We should be debating how many hours work a modern economy can support, and at what stage of life people should be doing the necessary work. The UK has too an extent, hidden the youth unemployment problem with it's "University for all" policy. Assuming that we remain within the EU, I'm wondering whether we will see in a few years, something on the lines of an EU retirement directive, lowering retirement ages again, driven by the member states with a serious (+50%) youth unemployment problem.

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It does annoy me that politicians seem to think that the simple answer to pension problems is to increase retirement age, without appearing to consider the consequences for the jobs market, and in particular, youth unemployment. We should be debating how many hours work a modern economy can support, and at what stage of life people should be doing the necessary work. The UK has too an extent, hidden the youth unemployment problem with it's "University for all" policy. Assuming that we remain within the EU, I'm wondering whether we will see in a few years, something on the lines of an EU retirement directive, lowering retirement ages again, driven by the member states with a serious (+50%) youth unemployment problem.

Of course it has.

Our politicians are not equipped for the challenges of what productivity gains, increasing population and less available work means. They continue to sell aspirations to students, hardworking families and pensioners. Aspirations are long-term, politicians operate in the short-term. Not only do employment opportunities and worthwhile activities need to be looked at with fresh eyes, but realism over living costs and especially over housing needs to set in. We are not going to get this with the current crop of politicians and hangers-on making and implementing policy.

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you have to factor in overtime when looking at the whole employment picture.

a lot of workplaces have regular overtime this overtime could translate as an extra number of full time staff working standard hours.

of course the workers MUST have overtime as they have large mortgage debts to service.

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