Well, the title’s correct at least
There is a NEETs crisis – but it is being deliberately created by the government
Sure, higher min wage, no firing of dullards, more taxes on employing someone, too many degrees and not enough training, hte nationalisation of apprenticeships. Sure, all being deliberately created.
The analysis following that title somewhat fails of course:
The fact is that the entire foundation of UK macroeconomic policy rests on the belief that some unemployment is necessary for inflation to be controlled. Neoliberal economists call this the NAIRU, the non-accelerating inflation rate of unemployment. Behind the technical language is a very simple proposition. The economy must always contain a pool of people who cannot find work.
Cretin. The point of Nairu is that changes to the microeconomic structure of the economy – wages, taxes on emplyment, ease of hiring and firing, all that sort of stuff – change what the Nairu is. If you’ve a high Nairu then you’ve a stultifying micro-set of rules. The answer is to change those rules.
Entirely possible to have a Nairu at the 2% or so that is really zero unemployment – gotta give people time to change jobs etc – but that does mean having a red in tooth and claw free market employment market.
The first victims are usually young people. They have the least experience. They are the newest to the labour market. They are the easiest to exclude. They have little chance of complaining because they are, economically, just about the weakest group in society, and, when many have few dependents, they are also considered the easiest group to sideline. When economic opportunities contract, they are pushed aside first. The NEETS issue is then deliberately constructed. It exists as a policy choice.
So, vicious free markets to aid the young!
