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.

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

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