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Labour market developments in Europe, 2013
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Labour market developments in Europe, 2013

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After four years of deteriorating labour market outcomes, the first signs of stabilisation in EU unemployment are becoming manifest against the background of GDP growth turning positive, improving sentiment, and recent reforms. Major labour market disparities persist across the EU and the euro area. In 2012, economic activity contracted by 0.3% in the EU and by 0.6% in the euro area, on the back of financial market fragmentation, debt overhang, and decelerating growth in emerging markets. The unemployment rate in the EU and the euro area has continued to climb further until early 2013, reaching values above 11% and 12%, respectively. Current unemployment rates are unprecedented for both the euro area and the EU in recent history, being well above the previous peak registered after the 1993 recession. Labour dynamics continued to differ substantially across countries. While employment growth was robust in the Baltics, Germany, Hungary, Malta, Romania, employment losses were recorded especially in Bulgaria, Croatia, Cyprus, Greece, the Netherlands, Spain, and Portugal. Differences in unemployment dynamics reflected to a large extent GDP growth differences, but a relevant role was played by different responses of employment to economic activity. In particular, in the countries deeply affected by debt crises and deleveraging, the worsening of the labour market was stronger than it was expected on the basis of GDP growth, which suggests that employers' expectation on economic prospects could have played a role. Overall, the patterns of labour market dynamics across the EU further contributed to increasing the already high degree of dispersion of unemployment rates, with the relevant exception of the Baltic countries, where the high unemployment levels are falling at a rapid pace.
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ISSN 1725-3217
ISBN 978-92-79-28538-7
DOI 10.2765/40221
Αριθμός καταλόγου KC-AR-13-006-EN-N
ISSN 0379-0991
ISBN 978-92-79-29004-6
DOI 10.2765/46652
Αριθμός καταλόγου KC-AR-13-006-EN-C
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ISSN 1725-3217 ISBN 978-92-79-28538-7 DOI 10.2765/40221 Αριθμός καταλόγου KC-AR-13-006-EN-N
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ISSN 0379-0991 ISBN 978-92-79-29004-6 DOI 10.2765/46652 Αριθμός καταλόγου KC-AR-13-006-EN-C
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