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Comparisons and contrasts of the impact of the crisis on euro area labour markets
2015
Authors
with Ad hoc team of the European System of Central Banks
Publication Year
2015
Abstract
The global financial and economic crisis – including two euro area recessions in 2008-2009 and
2011-2013 – has had a heavy impact on euro area labour markets. A notable feature throughout
the crisis has been the considerable degree of cross-country heterogeneity of labour market
adjustments – with some economies emerging relatively unscathed, while others have seen steep
and persisting increases in unemployment. This paper analyses the impacts of the crisis on euro area
labour markets, paying particular attention to the differential impact of the two euro area recessions
of the crisis and the interplay of sectoral and institutional features driving labour market outcomes.
Despite ongoing structural reforms in some euro area countries, progress has been partial and
uneven across the euro area. Further reductions in labour market rigidities are necessary to increase
and accelerate the adjustment capacity of euro area labour markets and help reduce the current high
levels of structural unemployment.