The macro-economic situation in Europe continues to be extremely challenging.
A number of Member States are in a double-dip recession and labour markets are in a crisis not seen in the EU for at least two decades.
What is more, the outlook is not getting better. The European Commission’s Autumn forecast, presented on Wednesday, projects GDP growth in 2013 to be only 0.4% in the EU27 and 0.1% in the Euro area. Employment in the EU27 is projected to fall by -0.8% this year and by another -0.5% next year.
Europe was experiencing a mild recovery in 2010 and early 2011, but for more than a year now, growth has been zero or negative, and unemployment in the EU27 has risen from some 23 million in mid-2011 to nearly 26 million at present, and it is projected to rise still further during next year.
The number of long-term unemployed has also increased since last year and reached 10.7 million, which accounts for 4.5 % of the active population.
And a particularly alarming aspect of joblessness in Europe is youth unemployment which stands at a historical high of 22.8 % as of September 2012.
It is becoming increasingly obvious that growth will not pick up in the absence of a credible solution to the systemic crisis of the Economic and Monetary Union. Austerity measures and far-reaching structural reforms have been undertaken by most European countries, but have not been sufficient to achieve stabilisation in financial markets or decrease sovereign bond yields for the so-called peripheral countries. Actions of the European Central Bank have helped a great deal, but no bond-buying programme can – on its own – assure financial markets about the irreversibility of the euro when the underlying economic developments across the Economic and Monetary Union are so different…
Choosen excerpts by JMM from
Almost nine million people in the European Union were considered “underemployed” in 2011, according to new Eurostat figures. These numbers add to the growing ranks of nearly 25 million unemployed in the EU, highlighting a ticking social time-bomb. Some 42 million workers in the EU were employed part-time in 2011, according to a survey by … Continue reading »
The national governments of Europe are not doing enough to create jobs and growth. The president of the European Commission, Jose Manuel Barroso, delivered this message after meeting with representatives of employers and trade unions in Brussels. Barroso called for immediate action. The crisis is going on unabated. Average unemployment in the EU is over …Continue reading »
Job Gap | 600 M Jobs missing in the world | 12 M in U.S. | A factor behind income inequalities
Spain’s high unemployment rate of around 23% means many Spaniards, young people in particular, are leaving the country to find work elsewhere. One popular destination is Germany, where the jobless rate is under 7%. But starting afresh in a new country is challenging. Munich’s airport shuttle bus is dropping off newly arrived passengers in the … Continue reading »
The UK labour market has become more challenging for all jobseekers, with unemployment particularly high among young people and those with limited education and skills says a Report by the Joseph Ronwtree Foundation. This research describes the difficulty of job searching for young people seeking low-skilled work, examining three contrasting local labour market areas in England … Continue reading »
An Interview with ILO Economist Sara Elder
The current weak economic recovery will keep unemployment rates in OECD countries high until at least the end of 2013, according to a new OECD report. The Employment Outlook 2012 says that the OECD-wide joblessness rate is forecast to remain high at 7.7% in the fourth quarter of 2013, close to the 7.9% rate in May … Continue reading »
Faced with a jobs crisis, policymakers the world over are digging deep into their policy toolkits to generate more employment. A recent study by the IMF’s Fiscal Affairs Department argues that reforms of tax and expenditure policies offer great promise in helping countries confront the jobs crisis, including in the short term. The study argues … Continue reading »
Job Gap is extending and has entered a new, more structural phase as austerity prevails says ILO who calls for a Global Job Pact
The World of Work Report 2012 provides a comprehensive analysis of recent labour market and social trends, assesses risks of social unrest and presents employment projections for the next five years. The report emphasizes that while employment has begun to recover slowly, job quality is deteriorating and there is a growing sense of unfairness. Moreover, … Continue reading »
Renault SA (RNO) says if President Francois Hollande wants more cars built in France, he needs to tackle the country’s high labor costs and rigid work rules. France’s second-largest carmaker, which is based near Paris and 15 percent owned by the government, built fewer than a quarter of the 2.83 million cars that rolled off … Continue reading »