EU labour market and social situation continues to deteriorate

The Quarterly Review published by the European Commission shows that the employment and social situation in the EU remains subdued despite small improvements. It confirms that overall employment is stagnant and is slightly decreasing in the euro area. However, there are significant differences between Member States.

The European Commission published its Quarterly Review which shows that overall employment is stagnant and is slightly decreasing in the euro area. Unemployment has been rising in the majority of Member States bringing it to above 10% since early 2012. In addition, differences between Member States remain significant, with around half the Member States experiencing some economic growth and the other half either in stagnation or seeing a decline in the first quarter of 2012. In January 2012, another Quarterly Review also published by the Commission showed that poverty is rising in many EU Member States.

Among the results of the review, due to the high unemployment rates in Southern European countries, many people, especially young people, are intending to move to another country. Recent figures confirm that labour mobility from those countries has increased, in particular to Germany. Besides, it also stressed that youth inactivity has increased. Some of this is explained by young people staying longer in education but the number of NEETs (those not in employment, education or training) continued to rise in 2011, accounting for 12.9% of the population aged 15-24 (up 2.0 percentage points on 2008).

With regard to the impact of the crisis on different sectors, large differences are apparent between industry sectors, with the construction sector losing the most workers (employment down 15% since 2008). The public sector experienced a sudden loss of workers as fiscal constraints kicked in. However jobs in health and social services remain a key driver for providing employment, and will continue to do so in the context of an ageing population and rising demand for healthcare.