Thousands of fake businesses across Europe are giving the unemployed something to do
Europe is taking a rather unorthodox approach to the problem of long-term unemployment, according to The New York Times, by creating networks of fake businesses. While engaged in no actual economic activity, the routines of these fake businesses provide unemployed Europeans with the chance to keep up habits, skill sets, social connections, and a sense of purpose. Their incomes come from Europe's social safety net programs, in particular jobless benefits — though these often replace only a fraction of a previous salary.
The idea for the fake businesses got its start in Europe after World War II, when many people needed to learn new skills. Now there are 5,000 of them across the continent, pretending to be engaged in everything from selling pets to providing office furniture.
Years after the 2008 collapse, large swaths of Europe remain mired in economic sclerosis. In 2014, just over half of the continent's unemployed had been without work for a year or more, and many had been without work for two years.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.
-
The week's best photos
In Pictures Firing shells, burning ballots, and more
By Anahi Valenzuela, The Week US Published
-
The Great Mughals: a 'treasure trove' of an exhibition
The Week Recommends The V&A's new show is 'spell-binding'
By The Week UK Published
-
Damian Barr shares his favourite books
The Week Recommends The writer and broadcaster picks works by Alice Walker, Elif Shafak and others
By The Week UK Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published