Labour Market

Unemployment falls, but remains the problem in Euroland

In the European Monetary Union (EMU) unemployment has been falling since Q2 2013. The rate has been gradually reduced from over 12 percent to at present 10.2 percent. A large proportion of the new jobs created can probably be attributed to the moderate economic recovery. However, it has not yet become strong enough to drive the rate down to levels prior to the crisis. For this reason, there has only been a very slow decline in the unemployment rate. The turgid unemployment in many EMU member states is also a reflection of a lack of structural reforms. Some of the Eurozone economies have in the recent past introduced structural reforms to their labour markets. On balance, the indicators on labour market flexibility show that deregulation of termination and recruitment regulations has increased the scope in the labour markets of the individual EMU member states. And in response to the severe…