Labour market developments in Europe 2011

Employment in most EU countries proved considerably resilient immediately after the 2008.Recession. In 2010 in the most European countries were growth, but the employment was way behind. In the End of 2010 in a lot of EU-countries the working hours per worker were back to pre-crisis levels. And as well the headcount employment started growing again, but often the contracts were temporary. Nonetheless, the employment recovery is not expected to be as strong to bring about a significant reduction in the unemployment rate over the next middle long term. The speed at which unemployment will go back to precrisislevels will depend not only on the growthoutlook but as well on the presence of supportivepolicy frameworks.

The unemployment rate kept a very high level in the most EU-States and Youth-unemployment rise to a record level.Unemployment disparities within the EU and the euro area have grown markedly and this will persist in the next years even harder. While the prospects appear relatively rosy in theBaltics,unemployment is expected to grow in the future inSpain, Ireland, Greece and Portugal in 2011. The unemployment rate of Germany, at the record levelof 7.1% in 2010, a value not reached since theearly 1990s, is expected to further fall in 2011 and2012.Wage moderation has prevailed during the recovery, with a reduction in the growth of nominal wages compared with previous years, and with real wages growing below productivity.Nominal wage growth remained muted in 2010in the Eurozone. The wage trend started in 2009 is consistent withthe priority of reducing unemployment, but it isonly since 2010 that real wage adjustment becameclearly stronger in countries with worseunemployment problems. The falling unit labour costs are compared in the most EU–countries with the surge in labour productivity.

The challenge is the fighting against the job insecurity. It seems that the labour marketmatching has been worsening in the euro area, as there is more unemployment for thesame number of vacancies. The fact that the long-term unemployment is risen a problem. The quality of new jobs created will also be a key toensure that the recovery coincides withreinvigorated income prospects, notably for the low skilled and the young.

http://ec.europa.eu/economy_finance/publications/european_economy/2011/ee2_en.htm

3 thoughts on “Labour market developments in Europe 2011

  1. In most EU countries, unemployment rates remained at the high levels reached since 2009 and youth unemployment has reached record highs. Unemployment disparities within the EU and the euro area have grown markedly, and the most recent trends and projections indicate the divergence in unemployment rates are likely to persist and possibly aggravate in the coming years. Unemployment duration has increased as a result of persistently low job creation and matching in the labour market has worsened. Wage moderation has prevailed during the recovery, with a reduction in the growth of nominal wages compared with previous years, and with real wages growing below productivity. The considerable surge in labour productivity was coupled with falling unit labour costs in most EU countries.

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  2. I think your article points out a very important problem, which exist in almost whole europe. The growing unemployment during the last years. Especially in Spain or in Greece the unemployment rate has reached a very high level. Furthermore the unemployment among young people has grown to a significant problem. In my opinion in the next years there will be measures among europe to prevent the unemployment rate to grow more and more .

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