Sun, Oct 23, 2011 - Page 11 News List

Young Europeans stuck in ‘junk jobs’

Young professionals have no choice but to work temporary jobs with no contracts and low pay — because there’s nothing else

By Fiona Ortiz and Feliciano Tisera  /  Reuters, MADRID

Demonstrators protest in front of Spain’s labor ministry in the Puerta del Sol, Madrid, on June 10.

Photo: Reuters

Silvia knew things would be tough, but never like this.

With a masters’ degree in publicity, the 24-year-old has been working for more than two years, full-time, in an internship that is starting to feel like it will never end.

Paid 300 euros (US$415) a month for the same work as the salaried public relations professionals who sit next to her, she doesn’t earn enough to move out of her parents’ house, and her bus pass and lunch expenses eat up most of her pay.

However, despite feeling her multinational employer is flouting rules that limit the use of worker contracts with no benefits, she is not about to complain to the labor office, since she considers herself blessed to have a job at all.

“Since I was little my parents urged me to get a university degree to find good work, but I’m lucky to have any work at all. There were 30 of us in my graduating class and I’m one of the ones who is doing the best with their career,” Silvia said. She did not want her last name used in case of repercussions at work.

With Spain’s youth unemployment higher than 40 percent and its overall joblessness the highest in the EU at one in five, young professionals accept any conditions as they try to start their careers.

The story is much the same in Portugal and Italy where more people have so-called “junk jobs”: temporary contracts that used to be common in tourism, farming and construction, but are now used by all kinds of companies.

With the economy sluggish and the eurozone debt crisis strangling credit, businesses are keener than ever to avoid open-ended contracts with expensive severance pay.

A quarter of Spain’s workforce is on temporary contracts, as is 23 percent of Portugal’s, compared with a EU average of 14 percent.

In Spain, Portugal and Italy, a rigid dual system has emerged. Middle-aged people have stable jobs with benefits. They are expensive to fire and protected by masses of legislation. Meanwhile, younger workers are stuck in a revolving door of temporary contracts that are easy to abuse.

The two-track job market is stunting economic growth, studies show. Temporary workers get trapped for longer periods without benefits, which affects output and makes southern Europe less competitive.

DEAD-END ROAD

“You cannot just leave one segment of the labor market fully untouched and not motivate people to go to the job where they fit best ... you might create employment in the short term, but in the end it’s a dead-end road,” said Ton Wilthagen, a labor expert at Tilburg University in the Netherlands.

The curse of the mileurista — the Spanish-language term for a temporary worker who earns 1,000 euros a month without benefits — is not new. Young professionals in southern Europe have found a permanent position elusive for some time.

However, the lost generation has wandered deeper into a maze as the eurozone debt crisis intensifies. Economic growth is slowing again and public sector jobs are disappearing as governments try to bring huge public deficits under control.

“We used to talk about mileuristas like it was a bad thing. Now it’s good. A thousand euro a month temporary contract is decent,” said Jose Maria Marin, labor expert and contemporary history professor at Spain’s National University of Distance Education.

In Rome, 27-year-old Federico has moved from one temporary job to another since he graduated in history in 2009. A thousand euros a month is starting to look like an unobtainable dream.

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