its a knock-on effect of the opening up of labor markets, coupled with a individualized attitude to aging.
I don't blame the companies to be honest, they exist to generate profit and to grow.. they will take advantage of any system or flaw within systems to do so... its in their very nature.
The problem is with mismanagement of the workforce by many governments in favor of corporations and against workers.
Part 1 - nationalization/globalization:
In the past you lived in X city, and you wanted a job. You looked in the local papers, only circulated to local residents, and saw a decent job. You and 5 other local residents applied for the same job. 1/5 of you got it.
Then we progressed to national job-searches, largely led by the development of the internet. Now you are competing with lets say 500 people for each position... BUT you can apply for jobs all over the country as well, so now its more like 500 people for 100 jobs... still 1/5 of you ending up getting the job.
The kicker is though: What if you cant or wont move to secure work. What if you are stuck within your original city? Now your still applying for just the 1 job, but your up against a bigger proportion of whole country.. your odds are much worse then they were before.
These days we have gone further, now you are competing globally. You are up against people from all over Europe, and many jobs - the rest of the world. Likewise with the previous national example, if you are not willing to look for jobs globally, then your odds of finding work have decreased again.
These days unless you are well above average in your experience/capabilities, as a young person you must be flexible about where you live, if you want to have the best chance at finding the highest paid/highest level position you are capable of.
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Part 2: individualism/aging
For previous generations retirement meant either relying on the state, or going back a bit further, more often then not moving in and living with your younger family. It was part of the incentive to have children and to invest in them, so that you had someone to take care of you when you became to old to do it yourself.
As a result there was a societal momentum behind the passing over of jobs from young to old. It may not have often been a literal conscious decision, but there was a very good reason for father to pass his job/livelihood to his son, and for older workers to retire to be taken care of by their family, freeing up jobs for younger members to progress too.
Now though we have a reversal of that. Firstly we have an older generation who is incredibly individualistic and does not want to be a 'burden' on their younger family. As a result they hoard cash and savings in pensions, work longer and longer for more years to keep their Independence, and spend large amounts of money on care-homes. This for them is a self-less act, as they feel that they are not burdening their younger relatives, and letting them get on with their own lives.
In reality its awful for the younger generation. Their parents/grandparents wealth gets passed on to large face-less care companies rather then kept within the family.. jobs are held on to for longer rather then passed on to young people, and money that could be used to invest in their children's housing/grandchildren/investing in starting a company etc.. is instead saved away for old age.
Add to this that many old people do not have the flexibility to move around the country/world to reach the best jobs, and you get many who will move to lower-level positions because it is all that is possible within their local area.. meaning that their higher skills/experience clash against the younger inexperienced workers trying for the same positions. (This has happened a few times within my own family/friends.. older people who after being made redundant were left with the choice: move down to lower jobs, or move to were the higher jobs are.. they all chose to move down).
Now, this is not only the fault of the old. Young people are equally to blame for this. Its an entire societal problem where we (on average) do not look after our older family well enough, and we do not work together as a single family unit well enough. We are far to often just a collection of individuals who want their own Independence.
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Anyway... 1. Opening of job markets + 2. Aging/individualism = 3. The current state of the job market is dire compared to what it used to be for individuals - but it is amazing for those doing the hiring.
(As a side note, the complete and almost mandatory taring up of families and communities that is currently happening as a result of young graduates having to relocate across the country for work will have huge consequences to our society in the future. It is one of the largest and unspoken about break-ups of the family structure in recent times.)