It Isn’t Just Cybercrime

This is a post series on cyber crime. For more posts click here or the cybercrime tag below.

Cybercrime is a symptom.  It’s a symptom of the deep problems that the Progressive attempts to bring about a servile state in a world that is no longer compatible with the simplicity of a servile state economy create. The problem is Europe where most of the malware seem to emerge from is that too many young people are disenfranchised from opportunities to enrich their lives.  Along with the fact that everything is controlled and entry into the engineering and technical field is dependent on getting into the right schools which are rigidly guarded and have incredibly strict entrance requirements. That’s followed by the fact that if you don’t have the right credentials, success is unlikely. So as the following shows, millions of young men are thrown into the tender mercies of the welfare state.

 

The problem of youth unemployment in the European Union is not new. Youth unemployment has been double or even triple the rate of general unemployment in Europe for the last 20 years. The events of the past few years have dramatically exacerbated it, however: 5.6 million young people are unemployed across Europe, and a total of 7.5 million are neither being educated nor are they working. Moreover, while young people are eager to work, more than half of those without jobs say they simply can’t find one—all while businesses across Europe insist they struggle to find young people with the skills they need.

To understand this disconnect and what can be done about it, McKinsey built on the methodology used in our 2012 publication, Education to Employment: Designing a System that Works.1 1. The report focused on the following countries: Brazil, Germany, India, Mexico, Morocco, Saudi Arabia, Turkey, the United Kingdom, and the United States. We concentrated on four broad questions:

  1. Is the scale of the youth-unemployment problem in Europe a result of lack of jobs, lack of skills, or lack of coordination?
  2. What are the obstacles that youth face on their journey from education to employment?
  3. Which groups of youth and employers in Europe are struggling the most?
  4. What can be done to address the problem?

To answer these questions, we surveyed 5,300 youth, 2,600 employers, and 700 postsecondary-education providers across 8 countries that together are home to almost 73 percent of Europe’s 5.6 million jobless youth: France, Germany, Greece, Italy, Portugal, Spain, Sweden, and the United Kingdom. We also examined more than 100 programs in 25 countries to provide examples of companies, governments, education providers, and nongovernmental organizations that may be relevant to Europe.

Our research led us to the following answers:

1. While there are more people looking for work, employers in Europe cannot find the skills they need.

Clearly, the lack of availability of jobs in Europe is part of the problem, but it is far from the whole story. In many countries, the number of people employed has actually remained steady, and in some countries, increased, since 2005. A greater number of older people are working longer, and more women with children are choosing to join or remain in the workforce. Across the 15 countries that were members of the EU prior to May 2004, for example, the percentage of people aged 55 to 59 who are in the labor market has jumped 11 percentage points since 2005, while increasing 4 percentage points among women aged 35 to 39. This increase in the participation rate in a demand-constrained environment means greater competition for jobs for younger people, who are disadvantaged by their lack of proven experience. Meanwhile, labor-market regulations that discourage hiring and firing, which are common in Europe, make it even more difficult for youth to step onto the first rung of the employment ladder.

Yet despite this availability of labor, employers are dissatisfied with applicants’ skills: 27 percent reported that they have left a vacancy open in the past year because they could not find anyone with the right skills. One-third said the lack of skills is causing major business problems, in the form of cost, quality, or time. Counterintuitively, employers from countries where youth unemployment is highest reported the greatest problems. So why is it that young people are not getting the skills that employers need? One reason is the failure of employers, education providers, and young people to understand one another. To cite our 2012 report, they operate in “parallel universes.”

In Europe, 74 percent of education providers were confident that their graduates were prepared for work, but only 38 percent of youth and 35 percent of employers agreed. The different players don’t talk to one another and don’t understand one another’s expectations and needs. Only in Germany and the United Kingdom did most employers report that they communicate with education providers at least several times a year. In Portugal, only a third did. And only in Spain did most employers report that their interactions with providers were actually effective.

2. Youth face three significant hurdles.

The education-to-employment (E2E) path can be described as a road with three intersections: enrolling in postsecondary education, building the right skills, and finding a suitable job. The problem is that in Europe there are roadblocks at each of these three points.

When it comes to enrolling in further education, the most significant barrier in Europe is cost. Although university tuition fees are usually highly subsidized in Europe, many students find the cost of living while studying too high to sustain. Also, in a number of countries, nonacademic, vocational courses are not subsidized and can therefore be prohibitively expensive. Students also lack information: except in Germany, less than 25 percent said they received sufficient information on postsecondary courses and careers to guide their decisions. And finally, most of those surveyed said they perceived a social bias against vocational education; less than half of those who wanted to undertake a vocational course actually did so.

At the second intersection, young people are often not learning a sufficient portfolio of general skills while they study, with employers reporting a particular shortage of soft skills such as spoken communication and work ethic. Employers and providers are not working together closely to address this.

At the final intersection, young people find the transition to work difficult. One-third fall into interim jobs after graduating, and many more struggle to find a job at all. Many lack access to career-support services at their postsecondary institution. Many more do not pursue a work placement, in spite of this being a good predictor of how quickly a young person will find a job after his or her studies are completed.

3. The E2E structure is failing for young people and for small businesses.

To refine our understanding of the issue, we divided young people and employers into segments to examine different interventions to achieve better education-to-employment outcomes Specifically, we looked at how much support young people received on their path from education to employment, and the extent of their desire to develop skills that would make them more employable (Exhibit 1).

http://www.mckinsey.com/industries/social-sector/our-insights/converting-education-to-employment-in-europe

When you have millions of young men essentially disenfranchised from the economy, a high degree of lawlessness is inevitable.  When you add the low cost of entry onto the internet, the low risk of getting caught and the potential for real money, the attractions of cybercrime  are obvious.

Still we wouldn’t be seeing the level of crime that we have been seeing for a long time if it were not for the general dysfunction of the European economy and the global economy in general.  Cybercrime is an effect, not a cause for much of the worlds trouble.  The problem is that the whole system is too fragile to be stable.  At some point the welfare state is going to collapse and what happens will not be pretty.

With that in mind, the people involved with computer security are going to need to take deterrence and active measures more seriously.  If we keep going the way we are going the situation is going to snowball as more and more young European men with access to the internet and a computer see this as a way to solve their economic problems.  Until the negative consequences of what they are doing are rammed home by the force of law, it’s only going to get worse.

 

For more on the dysfunctional economy click Here or on the tag below.

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