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The Visual Commentary on Youth Unemployment Ella Baron's recent cartoon for The Guardian offers a poignant visual representation of the UK's youth unemployment crisis. The illustration captures the frustration and uncertainty experienced by young people seeking employment in today's challenging economic landscape. As a visual commentary piece, the cartoon effectively communicates the systemic issues affecting younger generations without relying on traditional journalistic text. The Economic Landscape for Young Workers The cartoon appears to depict the disconnect between the skills and education of young people and the available job opportunities in the UK market. This reflects broader economic trends where graduates and school leavers face increasingly competitive job markets, often requiring experience that newcomers cannot yet possess. The visual metaphor likely illustrates how young workers are navigating an economic environment that presents significant barriers to entry. Generational Impact of Employment Challenges Baron's work highlights how prolonged unemployment or underemployment during formative years can have lasting effects on a generation's economic trajectory. The cartoon may emphasize how these challenges extend beyond immediate financial concerns to impact mental health, career development, and long-term economic prospects. This visual commentary serves as a reminder that youth unemployment is not just a statistical issue but a human one with far-reaching consequences. Policy Implications and Public Discourse As part of The Guardian's opinion cartoon series, Baron's illustration contributes to the ongoing public discourse about government policies and corporate practices affecting young workers. The cartoon likely serves as both criticism and call to action, prompting readers to consider what systemic changes might address the root causes of youth unemployment rather than merely treating its symptoms. The Future Outlook for Young Workers Through her visual storytelling, Baron may be suggesting that without significant intervention, the youth unemployment crisis could worsen as economic uncertainties continue. The cartoon likely implies that addressing this issue requires coordinated efforts from educational institutions, businesses, and policymakers to create pathways that align with the realities of the modern economy while providing genuine opportunities for younger generations to thrive professionally and economically.

The Surge in Tech Spending Tech billionaires have shelled out hundreds of millions of dollars ahead of the June 2 primary election in California, marking an unparalleled attempt to shape the state's political future. The tech industry's approach is comprehensive, funding candidates and ballot measures of all sizes, which is likely to make this the most expensive primary season in California's history. Key Players and Their Spending Google co-founder Sergey Brin has spent $66 million to fight a billionaire tax on the November ballot. Democratic gubernatorial candidate Matt Mahan has received the most donations, including from top executives at Google, Amazon, Snap, LinkedIn, Reddit, and Palantir. Crypto mogul Chris Larsen has funded three Super PACs with $26 million to influence campaigns across California. Google and Meta have collectively funded a Super PAC with $10 million to back assembly and senate candidates in local district races. The Impact on California Politics The influx of tech money has led to a barrage of TV ads, robotexts, and mailers promoting various issues and candidates. Experts warn that this spending will give tech companies political and regulatory leverage, allowing them to avoid stringent regulations and continue their rapid growth. The Tip of the Iceberg The disclosed spending likely represents only a fraction of the total, as some contributions are made through dark money entities that are not traceable. This has experts like Francesco Trebbi, a public policy professor at UC Berkeley, suggesting that the actual influence of tech money is far greater than what is publicly reported. Targeting State and Local Primaries The tech industry's influence extends beyond state-level races, with significant spending in local campaigns. Larsen, for example, has funded Super PACs aimed at various causes and candidates, including the state insurance commissioner race and state legislative primaries. The Future of Tech Influence in Politics The unprecedented spending by tech billionaires in California elections signals a new era of corporate influence in politics. As the tech industry continues to grow and shape the state's economy, its impact on the political landscape is likely to intensify, raising questions about the balance between economic power and democratic governance.

The LeadWhen Keir Starmer won a landslide Labour majority promising to pursue five governing "missions", the high-profile leftwing economist Mariana Mazzucato was credited as an inspiration. Two years on, her bracing new book helps shed light on why Labour in power has struggled to project the sense of direction that "mission-led government", as Mazzucato calls it, requires.A New Framework for Economic PolicySynthesising and extending her earlier work, here she proposes "a new economics of collective action around the common good". From this perspective, the economy is not a concatenation of rapacious independent forces, to be contained and offset by public policy, but a project – or rather a series of projects – with direction and purpose.The Five Principles of Common Good EconomicsThe "compass" in the title is really a set of five principles, all of which Mazzucato says such an economy should have: purpose and "directionality"; co-creation by citizens; collective learning; reward sharing; and accountability. Each of these principles is set out in detail. Co-creation implies grassroots participation in designing and redesigning government programmes, for example – because, "when people help define a problem and develop and implement solutions, they see them as theirs rather than something imposed on them".Reward Sharing and PredistributionReward sharing means ensuring the creators or rightful owners of economic value stand to benefit: from Indigenous people whose homes lie near raw material deposits, to social media users whose data fuels Big Tech's profits. That implies radical tax reform – including greater use of wealth taxes – and the robust use of conditions in public contracts, to make sure workers and taxpayers get their fair share: an approach she calls "predistribution".Critique of Labour's Economic ApproachAccording to Mazzucato's definition, Labour's attempt at mission-led government badly missed the mark. Its first and overriding goal – "kickstart economic growth" – cannot be a "mission" at all, because it lacks the necessary purpose. What, in other words, is that economic growth meant to be for? While her scope in this ambitious book is global, the analysis also dismantles Starmer's claim to be pursuing national "missions", by setting out just how radical – and radically different – that would look in practice.Practical Examples and Global Applications"The seeds of transformation are everywhere," she says, citing inspiring projects that range from delivering healthy and sustainable school meals in Sweden to the EU's mission to support cities to become climate-neutral, to the international Nagoya Protocol on sharing the benefits of genetic resources and traditional knowledge. Echoes of Mazzucato's mindset are detectable in some Labour policies – from using the threat of legislation to cajole pension funds to invest more in UK assets, to writing conditions on youth training into clean energy contracts.The Future of Economic DirectionEconomies work best, she believes, when they pursue grand collective goals – developing and distributing a vaccine for a pandemic; or confronting the climate emergency (or, though she doesn't lean on the example here, tooling up for a new and more frightening geopolitical era). We should ask, she says, "not which market failure do we want to be fixed, but what direction do we want the economy to sail in".

The LeadFormer US Federal Reserve Chair Jerome Powell has issued a powerful defense of central bank independence while accepting the prestigious John F Kennedy Profile in Courage Award. In his speech delivered in Boston, Powell warned against the growing politicization of monetary policy, directly addressing the mounting pressure from President Trump on the Federal Reserve's decision-making processes.Powell's Defense of Central Bank IndependenceIn a clear reference to the current political climate, Powell described the Fed as undergoing a "stress test" similar to other institutions during the Trump era. He emphasized that the US Congress had "wisely" chosen to insulate the central bank from political pressure, noting that all advanced economies maintain similar norms protecting monetary policy independence."These protections have served the public well, and administrations from both parties have respected them," Powell stated. He went on to warn that if any administration were to remove Fed officials over policy differences, it would set a dangerous precedent: "If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well."Powell argued that such actions would erode public trust in the central bank: "The public would lose faith that the central bank will make decisions based only on what's best for all Americans." He stressed that the Fed's credibility, built over many decades, is a "priceless asset" that must be safeguarded for future generations.Trump's Campaign Against the FedWhile Powell did not mention Trump by name, his comments directly address the sustained pressure campaign the president has waged against the central bank. Trump has repeatedly criticized the Fed for not cutting interest rates more sharply, even threatening Powell with dismissal during his tenure.The administration's actions have extended beyond mere criticism. Trump appointee and ally Jeanine Pirro initiated a short-lived criminal investigation into Powell's congressional testimony regarding renovation works at the Fed's headquarters. More significantly, Trump ordered the removal of Fed governor Lisa Cook based on unproven claims of mortgage fraud, though the Supreme Court has ruled she can remain in her position while a legal challenge is considered.These actions challenge the traditional interpretation of the Federal Reserve Act, which requires the president to demonstrate "cause"—widely understood to mean malfeasance—to remove any of the Federal Reserve's governors.Broader Implications for Democratic InstitutionsPowell's speech extended beyond the specific issue of Fed independence to offer a broader defense of democratic institutions. He acknowledged that "partisan political differences are normal—indeed essential—in a thriving democracy," but emphasized the need for unity on higher principles."Chief among them is respect for the rule of law," Powell stated, quoting John Adams: "ours is 'a government of laws and not of men'." He highlighted how public institutions "carry us forward through change" and "embody our commitment to freedom, democracy, and service of the public good."These comments reflect growing concerns about the erosion of institutional norms during the current administration, with the Fed's independence being a particularly significant case given its critical role in managing the economy.Future Outlook for Fed IndependencePowell's warning comes at a critical moment for the Federal Reserve, which has historically enjoyed broad bipartisan support for its independence. The current administration's challenges to this norm could have far-reaching consequences for monetary policy and economic stability.Markets and economists will be watching closely to see whether the administration continues to pressure the Fed on interest rate decisions and whether other central bank governors face similar threats. The ongoing legal challenge to Governor Lisa Cook's removal will also be closely monitored as a potential test case for the limits of presidential power over the central bank.As Powell noted in his speech, the Fed's credibility is built over decades and can be lost quickly. The coming months may reveal whether this fundamental principle of American economic governance will withstand the current political pressures.

Lead: Record Bonuses Signal AI‑Fuelled Profit SurgeSamsung Electronics’ memory chip division has struck a landmark profit‑sharing agreement that will deliver average bonuses of £310,000 to its workers, underscoring the massive profit lift from the AI boom.Landmark Profit‑Sharing Deal for Samsung’s Memory Chip Workforce74% of 62,616 union members voted in favour, averting a potential 18‑day strike.The pact, mediated by the South Korean government, allocates 10.5% of the semiconductor division’s operating profit to special bonuses.Bonus amounts vary: Reuters cites a top worker earning a 626 million won bonus (~£310,000), while Bloomberg estimates an average of 513 million won (~£250,000).Financial Scale of Bonuses and Profit AllocationSamsung employs roughly 78,000 staff in its semiconductor arm.At the reported rates, total bonus outlay could exceed 40 billion won (≈£25 million).The deal follows a broader rally: SK Hynix shares jumped >9% and Micron surged 19% after UBS tripled its price target.Implications for South Korea’s Economy and Global Chip SupplySamsung accounts for about 25% of South Korea’s exports; a strike would have hit the national economy hard.Higher bonuses may create internal tension, as workers in consumer‑electronics divisions receive far smaller payouts.Investor groups warn the precedent could embolden other unions to demand similar profit‑sharing schemes.Future Labor Negotiations and AI‑Driven Chip Market OutlookA consumer‑electronics union has already sought a court injunction, hinting at renewed bargaining cycles.Continued AI‑driven demand for memory chips is likely to keep profit margins high, sustaining the incentive for generous worker incentives.Analysts expect the AI trade shift to keep memory‑chip valuations elevated, potentially prompting further profit‑sharing models across the industry.

The Growing Need for Worker Representation in AI ImplementationWorkers urgently need more bargaining power over the way AI is adopted in the workplace to ensure the benefits are fairly shared, according to a TUC-backed report from a leading thinktank. The Institute for Public Policy Research (IPPR) is calling for a package of measures to boost employees' influence at what it calls a "pivotal moment in the history of work".Survey Reveals Mixed Impacts of AI on WorkersThe IPPR report cites survey data showing that while 20% of workers say AI is making their working life better, 21% say it has made it worse – and 4% believe they have already lost a job because of the technology. The thinktank distinguishes between three potential impacts of the technology: augmentation, where it complements human labour; degradation, where it undermines the experience of work; and displacement, where it replaces workers altogether.Call for Statutory Consultation and Worker SupportThe report's recommendations include a statutory duty on employers to consult their workers over the adoption of AI and a "worker support levy," which could be funded by companies or workers themselves. The idea of this levy would be to create a portable "wallet" of benefits that workers could take with them from one job to another – such as union membership, insurance or training – with the broad aim of increasing their bargaining power.Historical Context for Technological TransitionsPaul Nowak, the general secretary of the TUC who has written a foreword to the report, emphasized that "great technological transitions only result in meaningful social progress when they are shaped actively and decisively." He drew parallels to the Industrial Revolution, which saw 50 years of wage stagnation while profits soared, suggesting that "it took the difficult birth of the labour movement to tip technological gains towards workers' interests and broader social wellbeing."Government Stance on AI AdoptionThe government has made clear it is enthusiastic about the adoption of AI in the UK, with Rachel Reeves highlighting it as one of three drivers of stronger economic growth. In her Mais lecture, the chancellor called AI "the defining technology of our era", saying she was determined to "maximise the value added … to the wider economy and the public sector through accelerated adoption."Future Outlook for Worker-AI RelationsAs Labour has already introduced a historic upgrade to workers' rights since coming to power in July 2024, the debate around AI's role in the workplace is likely to intensify. The IPPR's recommendations suggest a growing recognition that technological advancement must be balanced with worker protections and representation to ensure equitable outcomes in the rapidly evolving landscape of work.

A shock government‑backed report this week warned of the danger of a “lost generation” of young people in Britain, as the number of 16‑ to 24‑year‑olds not in education, employment or training (NEETs) rose to more than 1 million, roughly 13.5% of the cohort.Rising NEET Numbers Spark Alarm in the UKOfficial UK statistics show that 13.5% of young people are not in work or college, climbing to 15.8% among 18‑ to 24‑year‑olds – nearly one in six. The report, authored by former Labour cabinet minister Alan Milburn, warns that without decisive action the country could see a sustained “lost generation”.Comparative NEET Rates: UK vs NetherlandsUK NEET rate (16‑24): 13.5% overall, 15.8% for 18‑24 year olds.Netherlands NEET rate (15‑29, adjusted): 5.3% last year, consistently below 5% for over a decade.Potential impact: Matching the Dutch rate could move 600,000 more 18‑ to 24‑year‑olds into learning or earning.Why Dutch Vocational Pathways Keep Youth EngagedThe Dutch system centres on three pillars: strong vocational secondary education (MBO), a welfare safety net that prioritises engagement and rehabilitation, and financial incentives for employers. Around 70% of Dutch 16‑ to 19‑year‑olds in upper secondary education attend an MBO school, and 35% of under‑25s later study at technical or professional universities. By contrast, only 22% of UK 18‑ to 21‑year‑olds were on vocational courses in 2024.Technical education is treated as “the foundation of the economy”, with work‑based learning embedded in curricula – many students combine four days of school with one day of on‑the‑job training.Policy Levers Behind the Dutch Low NEET RateThe 2004 Work and Social Assistance Act devolved welfare programmes to municipalities, creating personalised, localised support that addresses mental health and long‑term illness. Local councils provide tailored engagement programmes, subsidised employment, and specialised training, preventing young people on incapacity benefits from falling through the cracks.Employers receive fiscal incentives, such as payroll‑tax cuts and direct subsidies that cover up to 70% of wages for chronically unemployed youth, as highlighted by the Youth Futures Foundation. Rotterdam’s city council, led by Tim Versnel, funds up to 70% of wages for young chronically unemployed people and offers holistic support covering mental resilience, substance‑use treatment, and financial literacy.What the UK Could Adopt to Reverse the TrendTo emulate the Dutch success, the UK might consider:Expanding vocational pathways and integrating work‑based learning into secondary education.Devolving youth‑welfare services to local authorities for more personalised support.Introducing targeted fiscal incentives for businesses hiring young workers, including wage subsidies and tax relief.Adopting a whole‑of‑life approach that combines education, mental‑health services, and financial literacy for chronically unemployed youth.While cultural and structural differences mean a direct copy is impossible, the Dutch experience offers a roadmap for reducing Britain’s NEET rate and revitalising its youth labour market.

Lead: A Milestone Reflection on Climate ActionIn its 250th edition, the Guardian's Down to Earth newsletter pauses to assess how the world's fight against climate change has unfolded since the high‑water mark of Cop26 in Glasgow, 2021.Looking Back: Cop26’s Promise and the Five‑Year Journey2021‑2022: Nations pledged to limit warming to 1.5°C, set net‑zero targets and pledged to phase out coal.2022‑2023: The Russian invasion of Ukraine and the Iran‑oil conflict drove crude prices above $100 /barrel, exposing fossil‑fuel vulnerabilities.2024‑2025: Populist governments rolled back environmental regulations, while renewable technology became cheaper and more widespread.Numbers That Matter: Public Awareness and Emissions GapsThe “Covering Climate Now” survey found that 80‑89 % of the global public recognise the climate threat and demand government action.Current national plans still point to a projected warming of about 2.8 °C, well above the agreed target.Renewable energy costs have fallen by roughly 70 % since 2020, making clean power “cheap, widely available and overwhelmingly popular.”Why the Momentum Slowed: Geopolitics, Economics and PopulismWar‑driven spikes in oil prices, the re‑election of climate‑skeptical leaders and the rise of populist rhetoric have eroded the optimism that surrounded Cop26, pushing many countries to backtrack on commitments.What Lies Ahead: Hopeful Trends and Persistent ChallengesDespite setbacks, advances in clean‑tech, growing public pressure and emerging green‑economy initiatives suggest a pathway forward, but the intertwined climate‑biodiversity‑economy crises demand coordinated global action.

The Lead Bangladesh has sought a new assistance programme from the International Monetary Fund (IMF) as it struggles with the economic consequences of the US-Israel war on Iran. The South Asian country is facing an energy crisis, supply chain disruptions, and rising fuel prices. What Has Bangladesh Asked For? The IMF's mission chief for Bangladesh, Ivo Krznar, announced that Bangladesh has requested a new IMF-supported programme. The size and precise terms of the requested financial aid package have not been disclosed, but Bangladesh's government said in March it was seeking $2bn in loans from various donors. How Badly Has Bangladesh Been Hit by the Iran War? Energy Crisis The war on Iran has caused a worldwide energy crisis, with fuel prices soaring to about $100 a barrel, up from $66 before the war. Bangladesh, which imports 95% of its oil and liquefied natural gas needs, has been severely affected. The country has raised fuel prices by 10-15% and halted production at most fertiliser factories. Garment Industry The ready-made garment industry, which accounts for over 80% of Bangladesh's export earnings, has also been hit. Shipping disruptions have pushed up import costs, and work orders are expected to decline by 20-25% in the next season. Cost of Raw Materials The disruptions to supply chains have impacted other industries in Bangladesh, with raw material prices for plastic products rising. The price of resin, a key raw material, has spiked to $1,500-1,600 per tonne, up from $900-950. Rising Foreign Debt Costs Bangladesh's external debt has risen in recent years, and the country is facing higher foreign-currency repayment pressures. The IMF warned that the Iran war risks triggering an increase in debt levels worldwide. What Is Bangladesh's History with the IMF? Bangladesh is already in the middle of a $5.7bn IMF programme that began in 2023. The country has agreed to move quickly to put a new programme in place, with the World Bank approving a $350m loan to help manage rising fuel import costs. Is the War Deepening a Debt Crisis More Broadly? The Iran war has exacerbated existing debt burdens across Africa, Asia, Latin America, and other regions. Sri Lanka, for instance, suffered a financial collapse in 2022 and secured a $3bn IMF programme in 2023.