Labour market development in Europe 2012

The labour market in Europe in 2012 suffers much under the debt crisis in the Eurozone. In the 17 euro countries, the unemployment rate has reached a peak at the beginning of this year. Particularly high, the unemployment rate is in Greece and Spain.  The Unemployment in the euro zone has reached a record high. The economic crisis divides the continent into two parts: the poor south and east and the rich north. In February, according to the European statistics agency Eurostat were 19,071,000 people out of work – more than ever before since the introduction of the euro in 2002. The unemployment rate is now at 12 percent, which is also a new record. Unemployment in the euro area could rise by the end of 2013 to 12.5 percent. Very conspicuous was once again the extreme gap between countries in the Eurozone. The situation in the southern European countries in crisis is still very difficult. The labor markets in the crisis-torn southern states experiencing the biggest collapse. Greece and Spain report an unemployment rate of more than 26 percent, in Portugal it is 17.5 percent. It is the lowest in Austria, where the unemployment rate stands at 4.8 percent, followed by Germany with 5.4 percent and 5.5 percent in Luxembourg. Italy is at a rate of 10.7 percent in the midfield. The unemployment rate rose for the fourth consecutive year. For example the Greeks have compared to the year 2009 and today a fifth less money. As a result, more and more families will be pushed to the margins of society. Reasons for this development are Job losses, bankruptcies and layoffs stress there the labor market. It is notable that countries with better-developed social system and at the same time flexible labour markets are better off. This applies to Germany and the Nordic countries.

Especially the young people are suffering from the crisis in southern Europe. In Greece, meanwhile, more than half under age 25 has no job (58.4 percent). In Spain, youth unemployment is at 55.7 percent, from 38.2 percent in Portugal and in Italy at 37.8 percent. An important reason why this number is so high in these countries is because of the simple job termination.

On average, youth unemployment in the euro zone in February was at 23.9 percent. The smallest is the rate in Germany with 7.7 percent, followed by Austria with 8.9 percent and the Netherlands with 10.4 percent.

The forecasts for the Eurozone are not good. The auditors from Ernst & Young expect that the number of unemployed increases in the second half of 2013 to 20 million people. The good thing about this development, the high point will be reached. In the year 2014 the unemployment rate may decreases. To achieve this situation, the economy has to get better. A very important fact to decrease the high unemployment in the Eurozone is to increase the demand in this area.

5 thoughts on “Labour market development in Europe 2012

  1. That is just a circle. The economies need yo increase demand. So people need to buy more, the companies will produce more, than they will employ more people or they could increase wages and people would have money to buy that more. But that is a bad start from the circle. Because people are unemployed, they don’t have money enough, so they buy just the most necessary for themselves. So what is the solution? Move to Austria!😀

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  2. It is always shocking to read the incredible high number of unemployed people in Europe, especially the youth unemployment rate. Today there are the latest figures for the youth unemployment rate in Greece: There are already 64% of young people without work. This happened, although the Greece government provided incentives since January to motivate companies to employ young people. The government in Athens decreased the monthly minimum wage for under-25 year old people to 500 euros with the aim to encourage companies to employ juveniles. But this had no effect.
    The future prospects for countries in crisis will not improve in the near future so that the unemployment figures will continue to rise due to stagnating and declining economic situations.
    Demand has to be increased, but the (unemployed) people do not have enough money to raise demand. So it is up to companies and governements to enhance demand, but also they are in crisis and mostly also have to save money.
    It is a vicious circle.

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  3. I think for the young unemployment in Europe it is along with other economic factors also the fault of states in connection with the education. The european countries are adopting new educational programs, which sometimes are not really good quality. There is more and more students, who are studying business and administrative areas. The problem is that the state doesn’t encourage the educational in the areas in which are lack of workers. For example in some countries; engineering fields. The state should have a sighted strategy, which would promote more and restrict certain studies.

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  4. “The good thing about this development, the high point will be reached. In the year 2014 the unemployment rate may decreases.” So this means that still more than half a year the number of unemployed people will increase. For me like a potential employee- the number of unemployment in average in EU for young people is quite shocking. Moreover, if person is searching for a job without previous experience chances to get job becomes even lower.

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