While most western economies are slowly moving out of recession, one stark reality is becoming increasingly evident: the challenge to create new jobs is going to be a bitter one with uncertain prospects of success.
The latest warning on this issue comes from the OECD: “Unemployment levels worldwide are set to remain high amid increasing fears that some elements of joblessness could become entrenched and even more difficult to solve.” The current economic recovery lacks sufficient strength to absorb the millions of workers that have either been made redundant or are just joining the labour market.
The social consequences of this phenomenon are, in my opinion, not attracting enough attention in the public debate that should be taking place on this issue. This is particularly the case in Malta where the media is, surprisingly, not investigating sufficiently the way that the current economic slowdown is changing peoples’ lives, sometimes very dramatically.
A recent article in the UK The Times argued that the benefits system in Britain was creating a generation of “useless, jobless men that are the social blight of our age”. The argument here is that the social benefits system is a disincentive for young unemployed to “get on their bikes” and look for work. I find such statements quite provocative and insensitive to the dramatic situation that many unemployed are facing. But at least the media is stimulating a discussion on this important issue.
I read a more balanced assessment in The Daily Telegraph that dismantles the idea held by many that social services are a disincentive to work. It recently reported that, according to the Association of Graduate Recruiters, there are 70 university graduates “scrambling for every vacancy”.
The Corriere della Sera had an even more incisive comment about the current issue of joblessness. It headlined one of its recent articles: “In Italy two million young people are not working or studying.” It goes on to explain how these young people are coping. The media has found an acronym with which they label these young people: NEET - not in education, employment or training. They usually decide to continue living with their parents well into their 30s and this has earned them the derogatory title of “bamboccioni” or spoiled brats.
As usual, some of our journalists prefer to sterilise their media reporting from such investigative reporting at a time when our society is undergoing big changes that will affect the way we live in the next two decades. They report what our politicians have to say on the subject. Local political views on this issue are as diametrically opposed to each other as they usually are in a tribal society.
For instance, we often hear that the recession has not really hit us hard. With unemployment hovering at about seven per cent when in the rest of the EU it is about 10 per cent we should not really be complaining. Those who are not happy with this simplistic argument are often accused of being too pessimistic and talking down the economy.
The consequences of the phenomenon of a jobless economic recovery will affect Malta as much as they will affect most other countries. Our official unemployment rate should be read in the context of other realities that characterise our economy.
For instance, we rarely hear anything about the number of underemployed people in our public service. In France, where the public sector is considered quite large, almost 20 per cent of workers work in this sector. In Malta, 28 per cent of employees have recession proof jobs with the state.
No one really knows the extent of our underground economy and how many workers it employs illegally. Yet, when one compares the quality of life that most people enjoy and relates this to their earnings, it becomes painfully clear that not everyone earning an income from work is in official employment.
Examining our employment rate can be much more sobering than gloating about how low our unemployment is. In the EU the employment rate is 64.6 per cent. In Malta we have the lowest rate of employment at 54.9 per cent, while in Cyprus it is almost 70 per cent.
If we want to avoid “the social blight of our age” – long term unemployment – we should be discussing the realities that are affecting our economy with all the warts and spots that are evident to anyone who refuses to wear blinkers.
This is the only way we can prevail in the struggle to create jobs.
jcassarwhite@yahoo.com