Great Graphic: European Unemployment and Science and Technology

Unemployment in Europe is near record highs. There seems to a be both cyclical and structural components. The the regional economy contracting for six consecutive quarters, the demand for labor is understandably poor.

However, this Great Graphic, from Simone Foxman at Quartz, considerably complicates the picture.   Unemployment levels for college educated (25-34 year olds, who studied science and high tech, are compared with those who studied other subjects.

In France and Germany it is clear.  Those with science and technology backgrounds are experiencing significantly lower unemployment in Northern Europe.  For example, France has an unemployment rate of a little more than 5% for those workers and almost 18% for the others.  The German cohort in science and technology has a 1.4% unemployment rate compared to 10.8% for the others.  

Southern Europe stands out.  Unemployment rates in science and technology are relatively higher than in the North.  The ratios are tracked in the second chart here.  Foxman suggests two reasons why this may be.  First, the periphery may not attract such industries, for a wide range of reasons.  This dovetails with the Doing Business studies that find that in many categories, it is more difficult to start, operate and close businesses in Southern Europe than the Northern Europe.  

Second, the training that is received may be inferior. This is difficult to ascertain, though Southern Europe appears to have a lower internet penetration rate than the north.     Moreover, these do not appear mutually exclusive and, when considering the impact of the  prolonged downturn,  it does not seem completely surprising that even some growth industries have been hobbled.  

Great Graphic: European Unemployment and Science and Technology Great Graphic:  European Unemployment and Science and Technology Reviewed by Marc Chandler on July 23, 2013 Rating: 5
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