Ten million more unemployed in Europe
GENEVA (ILO News): There are over 10 million more jobless people in
Europe now than at the start of the crisis, according to a snapshot of
the European labour market released by the International Labour
Organization (ILO).
"While fiscal and competitiveness goals are important, it is crucial
not to tackle them through austerity measures and structural reforms
that do not address the root causes of the crisis," said the ILO in a
snapshot of the EU labour market launched ahead of its 9th European
Regional Meeting.
"Instead, moving to a job-centred strategy could serve both
macroeconomic and employment goals." The employment situation has
continued to deteriorate since the introduction of fiscal consolidation
policies. Following a pause in 2010-2011, unemployment has kept growing
and shows no signs of improvement. Over the past six months alone, one
million people have lost their jobs in the EU.
The are more than 26 million Europeans without a job, with young and
low-skilled workers being the hardest hit.
Austerity a threat to prosperity?
Unemployment in Europe has reached historic levels and there is
growing concern that the jobs crisis is so deep it will have a profound
impact on the region's ability to recover.
Only five EU countries out of 27 (Austria, Germany, Hungary,
Luxemburg and Malta) have witnessed employment rates above pre-crisis
levels.
Countries such as Cyprus, Greece, Portugal and Spain have seen their
employment rate drop by more than three percentage points in the last
two years.
Long-term unemployment is becoming a structural problem for many
European countries. In 19 of them, more than 40 per cent of the
unemployed are now long-term unemployed, meaning that they have been out
of a job for 12 months or longer.
The worsening employment situation also means that the risk of social
unrest is now 12 percentage points higher than before the start of the
crisis.
Policies to address the crisis
The current employment scenario calls for the adoption of a series of
policies. First, addressing the structural issues that lie behind the
crisis, notably in the financial sector, which were at the epicentre of
the crisis but have not yet been resolved. The result is that small and
medium-sized companies do not have adequate access to bank credit, which
is crucial to produce and create jobs.
Second, confronting the downward pressures on wages and employment
that are damaging productive investment and intra-EU trade. The
successful experience of Sweden's response to its financial crisis in
the 1990s shows that such an approach is both effective and feasible.
Third, adopting emergency measures such as employment guarantee
schemes for young people. These are programs designed to help young
people get a job, education or training.
Fourth, using social dialogue between employers, workers and
governments as a key tool for designing policies, gathering support for
pro-employment reforms and ensuring that such reforms focus on what
people really need.
The ILO's 9th European Regional Meeting (which will be web-streamed)
will bring together government, worker and employer representatives from
51 European and Central Asian member States to discuss the way forward
for the region in the context of the continuing financial, economic and
social crisis.
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