Friday, November 15, 2013

Young, educated and jobless in Europe; China rethinks one-child policy; The basic income movement; Forbes is for sale; Stunning debut for Freelancer.com



1 Young, educated and jobless in Europe (Liz Alderman in The New York Times) Five years after the economic crisis struck Europe, youth unemployment has climbed to staggering levels in many countries: in September, 56 percent in Spain for those 24 and younger, 57 percent in Greece, 40 percent in Italy, 37 percent in Portugal and 28 percent in Ireland. For people 25 to 30, the rates are half to two-thirds as high and rising. Those are Great Depression-like rates of unemployment, and there is no sign that European economies, still barely emerging from recession, are about to generate the jobs necessary to bring them into the work force soon, perhaps in their lifetimes.

Dozens of interviews with young people around the Continent reveal a creeping realization that the European dream their parents enjoyed is out of reach. It is not that Europe will never recover, but that the era of recession and austerity has persisted for so long that new growth, when it comes, will be enjoyed by the next generation, leaving this one out. Many in the troubled south are carving out a simple existence for themselves in a new European reality. They must decide whether to stay home, with the protection of family but a dearth of jobs. Or they can travel to Europe’s north, places where work is possible to find but where they are likely to be treated as outsiders. 

For the European Union, addressing the issue has become a political as well as an economic challenge at a time of expanding populist discontent with the leadership in Brussels and national capitals. An estimated 100,000 university graduates have left Spain, and hundreds of thousands more from Europe’s crisis-hit countries have gone to Germany, Britain, and the Nordic states for jobs in engineering, science and medicine. Many others have gone farther afield to Australia, Canada and the US.

Young people caught in that cycle are at the edge of a growing category that economists call NEETs: those who are not in employment, education or training. According to Eurofound, as many as 14 million young Europeans are out of work and disengaged, costing European Union member states an estimated €153 billion (about $206 billion) a year in welfare benefits and lost production.

http://www.nytimes.com/2013/11/16/world/europe/youth-unemployement-in-europe.html?src=rechp&_r=0

2 China rethinks one-child policy (Gillian Wong in San Francisco Chronicle) China's leaders announced Friday the first significant easing of its one-child policy in nearly 30 years and moved to abolish its labour camp system — addressing deeply unpopular programs at a time when the Communist Party feels increasingly alienated from the public. Beijing also pledged to open state-dominated industries wider to private competition and ease limits on foreign investment in e-commerce and other businesses in a sweeping reform plan aimed at rejuvenating a slowing economy.

The extent of the long-debated changes to the family planning rules and the labour camp system surprised some analysts. Far from sweeping away all family planning rules, the party is now providing a new, limited exemption: It said families in which at least one parent was an only child would be allowed to have a second child. Previously, both parents had to be an only child to qualify for this exemption. Rural couples also are allowed two children if their first-born child is a girl, an exemption allowed in 1984 as part of the last substantive changes to the policy.

Beijing says the policy, which was introduced in 1980 and is widely disliked, has helped China by slowing population growth and easing the strain on water and other limited resources. But the abrupt fall in the birth rate is pushing up average age of the population of 1.3 billion people. Last year, a government think tank urged China's leaders to start phasing out the policy and allow two children for every family by 2015, saying the country had paid a "huge political and social cost." Earlier this year, state broadcaster CCTV said China has 310 labour camps holding about 310,000 prisoners and employing 100,000 staff, although some estimates range higher.

http://www.sfgate.com/news/world/article/China-to-ease-1-child-policy-abolish-labor-camps-4984900.php

3 The basic income movement (Khaleej Times) Growing unemployment and rising poverty levels in the developed world has led to the re-emergence of a movement calling for “unconditional basic income”, where the state provides a monthly pay cheque to every adult seeking some income. The movement got a boost last month when 125,000 signatures were rustled up in Switzerland, enabling supporters of basic income to get the initiative on the national ballot. The Federal Chancellery of Switzerland has said the citizen’s initiative has been accepted and a referendum would be held in about two years.

Supporters of the initiative have suggested a minimum basic income of $2,800 be given to any adult citizen who needs the money, irrespective of whether he or she is working, looking for a job, or just lazing around. The proponents of this social welfare policy claim that it would ensure “a dignified existence and participation in the public life of the whole population”. If enough voters in the affluent nation back the proposal, every citizen would be entitled to receive a monthly cheque of $2,800 from the government, irrespective of one’s personal wealth and income.

The move is expected to eradicate poverty, bring solace to the unemployed, especially the young, and help the aged and other disadvantaged sections of society to lead a decent life. The basic income movement is catching up in Europe and the US. Surprisingly, it has found favour with both conservatives and left liberals in the US.

The idea of a guaranteed minimum income was first conceived by English-American thinker, political activist and writer Thomas Paine in the late 18th century. The US Census Bureau recently revealed that 15 per cent of Americans (adding up to 46.5 million) live below the poverty line of $11,945. Doing away with all the existing welfare programmes and replacing them with a basic income, it is argued, would be a more effective way of tackling poverty.

http://khaleejtimes.com/kt-article-display-1.asp?xfile=/data/editorial/2013/November/editorial_November32.xml&section=editorial

4 Forbes is for sale (Christine Haughney in The New York Times) Forbes Media, which publishes Forbes magazine and has been making an extensive push into digital media and native advertising, is up for sale, the company confirmed in an email to the staff Friday morning. In the email, Michael S. Perlis, the chief executive of Forbes Media and the first nonfamily member to run the 96-year-old business magazine, wrote, “We have received more than a few ‘over the transom’ indications of interest to buy Forbes Media.The frequency and serious nature of these overtures have brought us to a decision point. We’re organizing a process to test the waters regarding a sale of Forbes Media.”

One person with knowledge of the process said Forbes Media expected to generate at least $400 million in the sale. Forbes, which used to be one of the most powerful news brands in business journalism, hired Mr. Perlis in December 2010 to help restructure the company after Steve Forbes’s two presidential campaigns and the industry-wide shift to digital media wiped out much of the family’s fortune. 

Even as Forbes has gained traction with its digital efforts, it appears to have declined in value. While Mr. Perlis is said to be seeking $400 million, Elevation Partners, the Silicon Valley private equity fund run by Roger McNamee, paid $240 million for 45 percent of the company in 2006. That suggests Forbes Media was valued at more than $530 million seven years ago. 

A sale of Forbes Media would be another recent example of legacy print publications changing hands. This year, The New York Times Company sold its New England Media Group holdings, including The Boston Globe, to a local businessman, John W. Henry, for $70 million, and The Washington Post Company sold its flagship newspaper to Amazon.com’s founder, Jeffrey P. Bezos, for $250 million. Among magazines, two transactions occurred this summer: Newsweek was sold to IBT Media by IAC, and Maxim, the men’s magazine, was sold to the Darden Media Group. 

http://www.nytimes.com/2013/11/16/business/media/forbes-says-it-is-for-sale.html

5 Stunning debut for Freelancer.com (BBC) Shares in the Australian online jobs site, Freelancer.com, have soared by as much as 400% in the company's stock market debut. Its shares launched on the Australian Stock Exchange at A$2.50 ($2.33) each, up from the A$0.50 they were offered at. The site matches freelancers with small businesses around the world and claims more than nine million users. It raised about A$15m by offering some 30 million shares.

Freelancer.com is the world's largest freelancing and outsourcing site by number of users and specialises in copywriting and graphic design jobs, among others. Market watchers say high demand for the firm's shares was caused in part by its previous rejection of a A$427m takeover offer from a Japanese recruitment firm.

Nick Motteram, managing director of On-Market BookBuilds, an Australian market listings specialist, said there had been a lot of positive talk about the upcoming initial public offering (IPO). But he said a 400% surge on a trade debut might indicate the company had been mispriced. Mr Motteram said the Australian revival was largely due to "pent-up investor demand and the lack of good IPO opportunities over the last 12 to 24 months". 

http://www.bbc.co.uk/news/business-24951922

No comments:

Post a Comment