Millionaires to blame for youth jobs crisis - report

Wed, 09/10/2013 - 11:13 -- nick

Millionaires are to blame for the European youth jobs crisis, according to a report in the New Statesman.

At least 26 million are unemployed in the continent, and many of them are moving country in order to find work.

There are now 8 million fewer Europeans aged 20 to 24 compared with 1989, so the problem isn't the number, and they are better qualified than their parents, so skills aren't the problem.

The magazine blames millionaires, citing the figure that while 170 bankers in Germany earn more than 1 million Euros each year, in London that figure is 2,400.

Rising pay inequality means money that used to be invested, benefiting the health of the UK economy and creating jobs, is now taken out of the more productive parts of the economy and spent on luxury goods, often foreign-made.

The New Statesman says:

"Just a slight equalisation of the pay distribution would free up enough money to bring full employment to the young, but we are told that young adults would be less productive than a few hundred financiers. Instead incomes of the top 1 per cent continue to rise and millions of others must work for less, in relative terms, than their parents received. This is why fewer can buy a home than their parents could, fewer can take an annual holiday and fewer in the UK now have adequate future pensions than since current records began 15 years ago."

The top 1% of earners have seen their share of national income rise from 7% to 10% since 1990, money that could be productively spent on job creation.

Read the full article

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