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.