Growth without jobs: is monetary policy hurting the youth everywhere?

This has been a decade of the Monetarists. 

In the name of taming inflation and invoking fears of 'crowding out', the  focus shifted early on with the advent of the 21st century to managing economies through monetary inducements and averments. The fiscal spending had to contract as a ratio of fisc deficit to GDP was fixed by policy makers. The ratio of government borrowings was fixed too. The withering away of the fiscal state is almost there.  The policy setters are the central bankers. Finance ministry then is a broad brush institution. 

The monetary transmission mechanisms run through banks and they all look vulnerable as the cost of capital mobilization is high (capital decided by central bankers' forum and by individual central banks)  ; the monetary ease has added to the quantum of NPAs. So the efficiency of the private sector is hurt by lumps of non performing assets and the transmission mechanisms look more clogged as regulatory prescriptions go up. Less jobs are created as growth slows down. Add to that the fact as technology intervenes, there are more machines than men needed. Skill reorientation acts with a lag. In the overall, unemployment increases and it hits the youth most adversely and painfully.  

Euro area looks among the hardest hit among the advanced countries. The MENA region seems so fragile; the political instability is perhaps explained by economic reasons. There  might be under -reporting / disguised unemployment in the emerging economies. 

Growth without jobs is not just income discriminatory; it affects purchasing power and so lack of effective demand for goods. 

Source of Data 

World Development Indicators 2015, THE WORLD BANK

	Unemployment				Youth unemployment
	Male		Female		Male		Female
	% of male labor force		% of female labor force		% of male labor force ages 15-24		% of female labor force ages 15-24
		2011-14		2011-14		2011-14		2011-14
Australia		6		6		14		12
Brazil		5		9		12		19
Canada		7		7		15		12
China		5		4		12		9
Hong Kong SAR, China		4		3		10		7
Germany		5		5		8		7
Greece		23		31		49		60
India		4		4		10		11
Japan		4		3		7		6
Russian Federation		5		5		12		14
Switzerland		4		5		9		8
United Kingdom		7		6		19		14
United States		6		6		15		13
World		6		6		13		16
Low income		5		7		9		11
Middle income		5		6		13		16
Lower middle income		5		6		13		16
Upper middle income		6		6		14		16
Low & middle income		5		6		13		15
East Asia & Pacific		5		4		13		11
Europe & Central Asia		9		9		19		20
Latin America & Caribbean		5		8		11		16
Middle East & North Africa		10		23		27		49
South Asia		4		5		10		11
Sub-Saharan Africa		7		9		13		15
High income		7		7		17		18
Euro area		11		12		28		28