Where the Jobs Are

Joel Kotkin's Our Immigrants, Their Immigrants

In a country where short workweeks and early retirement are sacred, there is little emphasis on creating new jobs and even less on grass-roots entrepreneurial activity.

Since the '70s, America has created 57 million new jobs, compared with just four million in Europe (with most of those jobs in government). In France and much of Western Europe, the economic system is weighted toward the already employed (the overwhelming majority native-born whites) and the growing mass of retirees. Those ensconced in state and corporate employment enjoy short weeks, early and well-funded retirement and first dibs on the public purse. So although the retirement of large numbers of workers should be opening up new job opportunities, unemployment among the young has been rising: In France, joblessness among workers in their 20s exceeds 20%, twice the overall national rate. In immigrant banlieues, where the population is much younger, average unemployment reaches 40%, and higher among the young.

To make matters worse, the elaborate French welfare state -- government spending accounts for roughly half of GDP compared with 36% in the U.S. -- also forces high tax burdens on younger workers lucky enough to have a job, largely to pay for an escalating number of pensioners and benefit recipients. In this system, the incentives are to take it easy, live well and then retire. The bloat of privileged aging blocks out opportunity for the young.

Luckily, better-educated young Frenchmen and other Continental Europeans can opt out of the system by emigrating to more open economies in Ireland, the U.K. and, particularly, the U.S. This is clearly true in technological fields, where Europe's best brains leave in droves. Some 400,000 European Union science graduates currently reside in the U.S. Barely one in seven, according to a recent poll, intends to return. Driven by the ambitious young, European immigration to the U.S. jumped by 16% during the '90s. Visa applications dropped after 9/11, but then increased last year by 10%. The total number of Europe-born immigrants increased by roughly 700,000 during the last three years, with a heavy inflow from the former Soviet Union, the former Yugoslavia, and Romania -- as well as France. These new immigrants have been particularly drawn to the metropolitan centers of California, Florida and New York.