August 23, 2022

Four million UK pensioners are forced to bail out family members; Unemployment for Chinese 16-24-year-olds reaches almost 20%

Four million UK pensioners are forced to bail out family members; Unemployment for Chinese 16-24-year-olds reaches almost 20%

Today’s global news summary brings news from the UK and China, and discusses issues as diverse as higher education, youth unemployment, and unemployment for over 50s. 
 


Four million UK pensioners are forced to bail out family members
Education and human capital
Four million UK pensioners have been forced to bail out younger family members in the last 12 months. As the cost-of-living crisis takes a hold, more than a third of UK pensioners in retirement (representing 4.3 million people) are reported to have given thousands of pounds to family and friends during the last six months, according to insurer LV. “Pensioners said they had also helped their families paying off debts, loans and credit card payments, while one in 10 needed money to pay for nursery, childcare or university fees,” The Telegraph reports.

IZA World of Labor contributor Sylke V. Schnepf explores university education, dropouts, and labor market success. In her article, she writes that “dropping out of university can be more advantageous than not having enrolled in university at all.”

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University dropouts and labor market success
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Key topics
The aging workforce and pensions reform
Youth unemployment

Opinions
Does education prepare you for working life?

Unemployment for Chinese 16-24-year-olds reaches almost 20%
Migration and ethnicity| Labor markets and institutions | Transition and emerging economies | Country labor markets
The Times reports that according to official figures “unemployment among 16 to 24-year-olds in Chinese cities hit 19.9 per cent last month […]. That’s a staggering 15 million young people searching for a job. It is the highest level since the Chinese government started publishing figures in 2018, and almost twice the British rate for that age group, which stands at 10.4 per cent.”

In 2016, IZA World of Labor contributors Junsen Zhang and Jia Wu wrote that “unemployment is at its lowest level in 20 years, implying that the Chinese economy is close to full employment.” With China’s economy in a state of flux following rapid growth over the last three decades, employment for 16–24-year-olds might remain unstable.

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IZA World of Labor articles
The Chinese labor market, 2000–2016
Trade and labor markets: Lessons from China’s rise

Key topics
Covid-19—Pandemics and the labor market

Huge surge in over 50s unemployment across UK
Program evaluation | Education and human capital
The UK has seen a 10% rise in 50–64 year olds who are economically inactive. The stats show that 375,000 over 50s were claiming unemployment in July, while the number of over 50s looking for employment has risen by 65,000 month on month. “The ONS’s Over-50s Lifestyle Study published in March found that 39% of those who left work or lost their job during the pandemic would consider returning to paid work in the future, with those in their 50s almost twice as likely to consider this (58%) than those aged 60 and over (31%),” The Guardian reports.

IZA World of Labor contributor Matteo Picchio notes that “encouraging people to work longer and fostering the employability of older workers have become priorities for policymakers.” Read his article.

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Covid-19—Pandemics and the labor market
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What is happening to unemployment in the post-Covid-19 labor market?
Measuring employment and unemployment—Primer and predictions

IZA Discussion Papers
COVID-19 Private Pension Withdrawals and Unemployment Tenures