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Global Youth Unemployment Hits 35 Million As Recent Grads Lean On Parents
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”)
…click on the above link to read the rest of the article…
“We Reached The Tipping Point”: Income Inequality Is Highest Since Records Began
“We Reached The Tipping Point”: Income Inequality Is Highest Since Records Began
While soaring stock prices do nothing to boost the economy, because as 7 years of hard facts have shown, the only thing “trickle down” QE has done is forced economists to jump the shark and demand not one but two seasonal adjustments to goal seek collapsing economic data, the S&P hitting new all time highs on a daily basis has certainly succeeded in one thing: pushing inequality around the globe, and especially in the US, to new record highs.
And earlier today the latest OECD report confirmed just that, when it reported that gap between the rich and poor in most of the world’s advanced economies is at record levels.
In most of the 34 countries in the Organisation for Economic Cooperation and Development the income gap is at its highest level in three decades, with the richest 10 percent of the population earning 9.6 times the income of the poorest 10 percent.
In the 1980s this ratio stood at 7 to 1, the OECD said in a report.
The wealth gap is even larger, with the top 1 percent owning 18 percent and the 40 percent only 3 percent of household wealth in 2012.
“We have reached a tipping point. Inequality in OECD countries is at its highest since records began,” said OECD Secretary-General Angel Gurria.
Keep in mind this only looks at earnings, which have actually slowed down in recent years, and ignores the massive imbalance in accumulated assets: assets which almost exclusively are controlled by the top 10%. As for the bottom 10%, 50% and even 90%? Well they have “liabilities.”
…click on the above link to read the rest of the article…
