The FT today has an article about how long-term youth unemployment is now back at 1998 levels despite a 5 billion pound benefits-to-jobs programme . Now if you go to this url, and have a look at the population pyramids for the UK you might begin to see part of the explanation for why this is happening. The cohorts now entering the UK labour market are slightly thicker than the previous ones. Coincidentally I have just put up a post on Afoe which mentions Richard Easterlin’s disadvantaged cohort theory. What is happening in the UK at the present time would, IMHO, be a good example of the Easterlin effect at work.
Long-term youth unemployment has returned to about the level it was when the governmentâ€™s flagship New Deal was introduced in 1998, casting doubt over the value of the Â£5bn benefits-to-jobs programme.
The sharp rise in long-term youth unemployment, which has increased by 60 per cent since its low point two and a half years ago, was revealed by figures from the Office for National Statistics yesterday.