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David MacWilliams is an Economist from Ireland who today writes:
The reduction in unemployment — not the banks, the bondholders or some secondary issue to do with the financial markets — has to be the cornerstone of our economic policy
Truer words were never spoken, David!
And now for one simple and very implementable idea about how to help achieve this -- Ariadne22 take note, this could be done, or even spearheaded independently, at the local level:
Quote:
So, how do we get in the door when the people inside the door don’t even know that we are there? This is where the labour market has to be changed. We have to make it easy for small firms to take people on. FAS has a scheme where young graduates can join companies for up to nine months to gain work experience on no pay, but they retain their unemployment benefits. This scheme should not be limited to young people. It should be open to all the unemployed.
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There is a myth that companies will somehow exploit such a system, but that is nonsense. Providing training within small companies is a hugely expensive task and is engaged in with care. No firm trains up somebody, not least a small firm, to risk seeing them walk out the door in six to nine months.
This is a win-win at little cost to the State. And there is a deeper opportunity here. For more mature businesses, let’s deal with an age-old dilemma that has held back employment — the initial cost of hiring staff.
1) Companies already exploit such a system in the US. Read what I said elsewhere about parents PAYING for college kids to have internships (I believe you even Rep'd that post), just Google what I'm saying and you'll see.
2) Some states are starting to do just that with nonprofits, though it's only for people on UI and not recent college grads, so maybe expanding that is a good idea. Legally it can only be done with nonprofits right now. I think GA was the first state to do it and NY has recently joined the fray (I got a letter on it, but I work p/t (ironically for a nonprofit and a public school district) and get partial UI so I didn't opt for it.
Bull**** bull****. We have a similar system here in Finland. About 15% of people currently working are unpaid "interns" and that number has skyrocketed in the last few years. Hire people as unpaid interns, and get rid of them when the 6 months is up and take new ones. Starting to be almost impossible to get a job that actually pays you money.
I think we need to be looking at what works in a lot of other countries, I'm just not sure this particular proposal is it. There need to be some limits and criteria.
For example many states already have programs where employers can 'try out' workers for a few months, and the state pays their wages or benefits. But the rosters of these programs become bloated with welfare-to-workers that most employers are turned off by it. They end up with waiting lists years long for interested workers. DC right now has a 24 month waiting list to participate in this 'trial worker' program. Not much help when you need to find work!
And there need to be limits on how many times an employer can just discard one temp and 'try out' another. Because right now in scandinavia this is exactly what's happening: employers just have a perpetual revolving door of interns. They never hire someone permanent. There needs to be some measure to prevent the exploitation of state assistance by employers.
There also needs to be some protections of paid workers from being replaced by interns. For example in Australia and the UK, an employer cannot lay off a worker without first exhausting all possibility of a transfer to another available position (including retraining that worker). This is for all kinds of workers, not just factory or service-sector workers. After those efforts are exhausted, the worker receives state assistance in finding work. If the employer fills the position--paid or unpaid internship--within six months, they have to first offer it back to the laid-off worker. In other words, no laying people off only to rehire a week later at a lower wage.
kadoka, even with those kinds of limits and criteria you mentioned. I still do not see the long-term benefits this kind of a program can have? Other than maybe providing free labor for companies while artificially lowering the unemployment rates, but unemployment right now is a temporary problem. Interns most always serve in some kind of entry-level position, it used to be that companies actually hired and paid people for entry-level jobs. Heck, some even paid a little during the training period before you got hired. Sure this might work and actually be useful in some very skilled jobs, but there are tons of jobs that are not like that.
This is the way of the future. I work as a unpaid intern. We also have a welfare to work person who comes in a few days a week. These are entry level jobs their is no money to pay anyone. I work in a city office. There is hardly any paid staff left. Major companies now use interns in alot of entry level jobs. Why pay someone when you do not have to? We keep pumping out colleges grads and there is nowhere for these kids to go. They will do anything to get their foot in the door. Work for free as an intern or pay to be an intern. On top of this tons of entry level white collar jobs has been sent to China and India ect. Thus there are less entry level jobs to start with.
I was an unpaid intern for my city. Unfortunately, many people still think being an intern means exciting, new projects to do and no real responsibility. I essentially RAN the recycling department for my city. While there was a coordinator, I administered programs, kept in contact with the public and answered questions, dealt with the contractors, kept the books, everything.
Many jobs I am looking for now are only offering unpaid internships. A few years ago, these jobs had the responsibility of easily a 30K a year salaried employee.
Many of my wealthy friends who graduated last year have their parents supporting them in full time unpaid internships. Sure, they work part time as well, but it's hard to sustain yourself on a 20 hour a week minimum wage job in DC, NYC, or Boston. My family cannot afford to do that for me and I have medical bills to pay, so I worry about ever breaking into my field.
The jobs for the most part will not be there in the future. Business is making profits by cutting cost. Not by selling products. The job market has been bad for years. But it looked good paper. My home is worth more stocks are in good shape. Tons of grads were already working dead end low paying jobs. Hey go to grad school add more debt more unpaid internships. The fact is when people retire they are not being replaced. This has been going on for years even before our current mess the do more with less.
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