Unemployment among graduates

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Individual work on Labor Economics

“Unemployment among Graduates”

Made by Vinogradova Irina

Group 5303

Table of Contents

1. Introduction

2. Unemployment in China

3. Unemployment in EU

4. Unemployment in Russia

5. Conclusion and Forecasts

7. Bibliography

1. Introduction

“Without higher education you will not find an appropriate job, you will not be respected” - so usually parents say, based on their own experience. Children, in their turn, have already begun to think on selecting the future profession in high school, attending additional classes and various courses. However, a tenacity and willingness to study for several years is not a 100 percent guarantee of admission to the university as well as the successful graduation cannot always necessarily supply with the working place.

Unfortunately, a young specialist usually has excessive demands and simultaneously lack of practical skills, while the majority of vacancies seek for employees with the working experience. It is impossible to study and work successfully at the same time, and not a lot of students are ready to sacrifice one for the sake of another. Of course, every educational program has various internships, but what should a person do if he or she was not invited to work there subsequently? The answer is to seek for a job on his or her own, but in order to find something appropriate it is needed to try hard. Furthermore, it is usually a long process, and a graduate may give up in the very beginning of the career.

That's why the problem of youth unemployment is sufficient nowadays. According to the common statistics, the average seeking-job period lies in between of 3 and 6 months, whereas 25% of graduates cannot find job for longer than half a year. This data seems so dramatically impressive to me, and due to it I have decided to have a view on the situation in the labor force market among graduates. Unemployment in China, European Union and Russia will be considered step by step in order to observe the whole situation under different circumstances.

2. Unemployment in China

Employment problems began to emerge in recent times due to the slowdown of the economy, which now experiences a deep stagnation. The main problem is the absence of working places for the economically active population, which is the biggest in the world. Naturally, it is very difficult to provide 798,1 millions people with appropriate job, but the authorities are willing to do everything. The main purpose is to raise the living standards and to supply nearly 7 millions of graduates with working places. Zeng Qian Quan, Shi Zhenzhen - “Youth policy in times of crisis”; “Pravda”

In 2013 the number of graduates in China is considered to be the largest in the history of the country. According to official Chinese media, in 2013 the number of graduates of colleges and universities in China will reach 6.99 million, which is the largest in the history of China. Difficulties with employment will be an unprecedented scale, also slowing economic growth makes the situation even worse, and companies in their turn do not want to employ new labor force. By the end of April, less than 30% of graduate students have signed contracts with the enterprises of employment. Among the students of Beijing universities, the figure is 28%; Shanghai - about 30%, which is 10% lower than last year. A similar situation is also in Shanghai and in one of the most economically developed provinces - Guangdong. Ilya Ivanov - “The rising youth unemployment in China”; “The Epoch Times”

However, the authorities have remembered the incident of 1989, when the uprising of students in Tiananmen Square in Beijing was brutally crushed by tanks. Expert on China and foreign editor of Chinese language magazine “China Affairs” U Fan in an interview with The Epoch Times said that the authorities are worried about the possible recurrence of the incident, and due to this they are closely monitoring the category of graduates, trying to help them. Officials said that they would support students in organizing their own business. Yin Chengzi, spokesman for the Ministry of Human Resources and Social Security of the PRC said:"We help graduates to find work. For example, create the conditions for that they were engaged in their own businesses, support their independence. We have developed 15 special demonstration models; it is particularly useful for those who do not have experience in business". Shao King - “China has begun to actively support the labor market”; “China Central Television”

Naturally, the creation of working places throughout the support of small business may be partial decision of the problem, but not the whole. It is necessary to develop a mechanism which can better prepare students for their future work, for example to cultivate all-round development of students, including the development of practical skills in order to make them adapt more quickly in the workplace. Wang Hongjun - “The issue of employment for college graduates is more acute”; “China Central Television”

3. Unemployment in EU

The even worse situation on youth labor market is in European countries in crisis. 5.6 million unemployed young Europeans have been called the "lost generation." The overall level of youth unemployment in the EU is 23%. Katie Pilbeam - “Unemployed young people has become a headache of Europe”; “Russia Today” In Greece and Spain, the situation is even more serious - there is no work in over half of the young people (respectively 57.6% and 55.6%). This statistic alone is alarming, but the consequences could be even direr. As it is seen from the graph, after the world crisis in 2008 all the indicators went up and are not going to fall. “Every eighth is out of work: Eurozone reported on new records”; “RBK World”

Economist Ekkehard Ernst from the International Labor Organization states that the problem lies in the fact that even a small period of unemployment early in the career of a graduate has a negative impact on the professional development in future. So, a psychological problem occurs. According to the study, "We have to stay overboard" - non-integration in the labor market at a young age psychologically is poorly tolerated than unemployment in adulthood. Julianne Sarnes from FutureLab Europe also writes about disappointment at the beginning of a career path: “in most cases, problems with finding work among young people in Europe are not related to the lack of qualifications. Greek and Spanish youth is at risk of social exclusion and poverty not because they were not sufficiently diligent in school or their level of education is insufficient. They remain out of work because of the incredible shortage of jobs across Europe”. Stefan Kaufmann - “Generation Lost”; “Handelsblatt”

As a result, more and more young people just turn away from the labor market and prefer social exclusion. This applies to 13% of young people aged 15 to 24 years. Obviously, The EU must find a way to solve the problem and give young people a future. There are also economic reasons. According to the European Commission, youth unemployment is estimated to cost for EU 150 billion euro, or 1.2% of EU`s GDP. Analytics propose 2 variants of proper solution:

· The guaranteed employment for young people. EU countries shall ensure employment within four months of the citizens under the age of 25 years. Above mentioned Ekkehard Ernst from ILO suggests that temporary jobs or even part-time employment are necessary for graduates in order not to lose the received skills, and that is better to have at least a temporary job and the opportunity to expand their own horizons than lying on the couch. "The biggest problem is when young people drop their hands and are completely out of working life"- claims Ernst.

· The introduction of universal 30-hour work week with full earnings. However, this proper solution was negatively accepted be both authorities and analytics, because it may greatly enhance the operational costs and in many areas exacerbate the shortage of specialists. Stefan Kaufmann -“Unemployment among young people in Europe”; “Handelsblatt”

Nevertheless, the majority of Europeans suggest that the best variant may be the increase in mobility of young specialists. While such countries as Germany and Austria are ready to attract new labor force from abroad, countries consumed by crisis are afraid of a leakage of perspective graduates, and here may be the essence of the main problem: people want the situations to be solved but simultaneously are not willing to change anything, though the labor migration may be the best solution.“ More students, good and different”; “Euro-Pulse”

4. Unemployment in Russia

unemployment economy stagnation career

The majority of Russians tend to think that everything is poor in our country, while things are not so bad. According to Rosstat, the amount of youth unemployment is nearly 15 % of economically active population. Naturally, the indicator itself is not very positive, but in the comparison with African countries or with the above mentioned EU countries - Russia has better chances to improve the situation quicker.

15% is the amount of youth unemployment as a whole, but as for the unemployment among graduates - the indicator is 27%, which means that practically every third yesterday`s student cannot find a job within 6 months. According to executive vice-president of the Russian Union of Industrialists and Entrepreneurs (RSPP) Fedor Prokopov, the problem of youth unemployment growth is complicated by the fact that the majority of Russian graduates have a high level of education, while the economy of the country could not supply them with appropriate working places. “Russian unemployment figures among graduates ”; “Ural Business Consulting”

Furthermore, job seekers are not satisfied with the conditions proposed by employers. It is a common situation when after graduating people are sure that they will find the proper, prestigious and highly-paid job immediately, although in Russia excessive demand and increased ambition can also be added to the problem. Nowadays employers often want graduates to jobs as sales representatives, consultants, merchandisers, call-center operators - so it means that graduates may find a job, but not in their field. A notorious joke about a philologist behind the cash register in McDonalds has become very topical. Moreover, this may be underpinned by the research of “BaltInfo” concerning the number and percentage of unemployed graduates of various schools. As it turned out, university graduates among the unemployed are twice more than the graduates of secondary specialized scientific institutions. This situation can be explained by the fact that today the graduates of colleges are more demanded. Not every employer hires graduates of the university, which is again due to the fact that people who have graduated from universities often overestimate the requirements when applying for a job. Also, most of them have no experience. Graduates of high schools are looking for work in areas where there are no places for new staff for a long time. Students, who have completed secondary specialized educational institutions, are employed in the demanded field, for example, in the service sector or in the sector of sales. “Among the unemployed there are more graduates”; “Stolichniy Dom Karrieri”

In this case, there is a very high percentage of employers who were completely dissatisfied with the level of skills of graduates - 39%, according to the company HeadHunter. "Almost 70 % of employers are not satisfied with the level of practical skills, which is quite logical: the graduates of this year have either small or none experience. In addition, employers have a low level of self-sufficiency, and half of the respondents are not satisfied with the level of professional knowledge. Most of the employers said that the level of training of graduates in this year is generally lower than the graduates of 3 -year and 10 -year old prescription. 84 % of employers believe that additional training is necessary for graduates of this year, "- according to the research of HeadHunter. Natalia Ishchenko - “College graduates are waiting for unemployment decade”; “Business FM”

However, level of unemployment among graduates of Russian universities should be evaluated depending on the region of its location. A similar opinion was expressed by members of the Russian Union of Rectors. As the head of universities, this figure cannot be divorced from the region, which is located in any given university. As an example of completely different situations in the field, the head of the RUR has given the percentages of unemployment among university graduates in Moscow (1%) and Ingushetia (47%). “According to the heads of Russian universities unemployment rate of university graduates should be evaluated according to region”; “Academica”

The upper diagram states the overall level of unemployment among graduates in 5 regions. Undoubtedly, the picture is not full and entire, but it is seen that because of different situations in different regions the level of unemployment differs dramatically. This fact should be taken into consideration by first priority, if Russian authorities began to solve this problem and start to invest money without the proper distribution.

5. Conclusions and Forecasts

The problem of unemployment among graduates has become global as the modern world is in the process of globalization. It is impossible to separate Russian Federation and all inner problems from European Union or the USA. But the essence is the same in all countries and it is the lack of working experience.

Undoubtedly, it is difficult to combine both work and studies, and a student usually should sacrifice one for the sake of another. But how to get enough knowledge from university if instead of studying a person works? And what to write in a CV in the “working experience” column, if a student has decided firstly to finish his learning? It is a like a closed circle with no way out.

Work experience, preferably in the specialty, nowadays is one of the essential requirements to candidates for the proposed replacement of the labor market vacancies. Accordingly, the absence of work experience will unlikely result into the employment. Therefore, the graduates have not only experience, but also the possibility of obtaining such experience.

Analysts worldwide give 3 possible decisions to the problem of getting working experience. Firstly, it is the implementation of such a mechanism as the quota of jobs for graduates. Although, the realization of these benefits is voluntary-compulsory, and from my point of view it is useless to force the employers to give work for those yesterday students, who are not proficient in the corresponding sphere.

Secondly, it is the system of conditions under which employers would be beneficial to hire graduates, in particular - introduced at the municipal level a system of tax privileges. The implementation of this idea is possible through parliamentary commissions and committees of the executive structures of power, but it is necessary to produce concrete financial calculations that will determine the strategy of implementing the idea. Although, the introduction of such policies needs much time, while the number of unemployed among graduates will not decrease by its own in this period.

Thirdly, the another possibility for university graduates of getting the necessary work experience may be the practice of temporary employment for one-off operation, for example, various types of promotions, marketing research, surveys, work in the sphere of politics, public works or volunteers` activity. It would be also useful to introduce the practice of obtaining recommendation letters from such working places. Temporary employment of graduates in this case will not only allow them to gain experience, but also earn a reputation that plays a significant role in today's labor market.

Of course, all universities are to provide the majority of students with internships or some useful personal connections, but not everybody is eager to work during holidays or vacations. “Student time will be the best occasion in your life” - such quotation is familiar to every pupil, and many of us enter universities with sweet dreams of everyday's parties. Also the reason for not working may be in the desire to prolong the childhood and to be away from adults` problems. Unfortunately, the turning point from infancy to maturity happens unexpectedly, but the decision to work may be the signal of it, and the above mentioned decision of trying yourself in every possible job will gain benefits in the future career.

6. Bibliography

1. Unemployment in China.

· http://www.epochtimes.ru/.

· http://gazeta-pravda.ru/.

· http://www.cntv.ru/ - 2 connected articles.

2. Unemployment in EU.

· http://russian.rt.com/article/.

· http://top.rbc.ru/economics/.

· http://www.handelsblatt.com/politik/international/.

· http://inosmi.ru/world/.

· http://www.euro-pulse.ru/.

· http://www.the-village.ru/village/situation/abroad/.

3. Unemployment in Russia.

· http://www.gks.ru/.

· http://urbc.ru/.

· http://sdk-hr.ru/news/.

· http://newsland.com/news/.

· http://academica.ru/novosti/Novosti-obrazovanija/.

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