Appalling overall unemployment in Eurozone at 20.6%

László Andor, Member of the EC in charge of Employment, Social Affairs and Inclusion, gave a press conference following the publication of the EC report on industrial relations. According to the report, the ongoing economic crisis poses a serious challenge to the dialogue between workers' and employers' representatives. The report shows that recent government reforms have not always been accompanied by fully effective social dialogue, leading to increasingly conflictual industrial relations in Europe. (EC Audiovisual Services, 11/04/2013).

László Andor, Member of the EC in charge of Employment, Social Affairs and Inclusion, gave a press conference following the publication of the EC report on industrial relations. According to the report, the ongoing economic crisis poses a serious challenge to the dialogue between workers’ and employers’ representatives. The report shows that recent government reforms have not always been accompanied by fully effective social dialogue, leading to increasingly conflictual industrial relations in Europe. (EC Audiovisual Services, 11/04/2013).

As it turns out real total unemployment exceeds by far the already dreadful percentages estimated by the national statistical services of the EU countries. According to a press release issued by Eurostat, the EU statistical service, in the EU of 27 member states apart from the tens of millions of the “normal” unemployed, there is another 43 million people working part-time. Out of them in “2012, 9.2 million (6.2 million in Eurozone) wished to work more hours, were available to do so and can therefore be considered to be underemployed. Since the start of the economic crisis the proportion of part-time workers wishing to work more hours and available to do so, has grown steadily from 18.5% in 2008 to 20.5% in 2011 and 21.4% in 2012”. Mind you those are percentages of part-time workers wishing to work full-time.

The same source reveals that in 2012 the number of people working part-time and wishing to work more but couldn’t find a full-time job was 4.4% of total employment. Unfortunately Eurostat doesn’t tell us what percentage of the total labour force this group of people is. Obviously it will be a bit less than 4.4%. It’s possible however to estimate that.

We know that in 2012 the group of people working part-time but wishing to work more numbered 6.2 million persons in Eurozone. Doing some simple arithmetic calculation one can arrive at the estimate that at that time Eurozone’s labour force was anything around 158 million people. Obviously those 6.2 million persons who wish to work more but can’t find an appropriate job are almost 4% of the total labour force.

Want to work more

Now, the European Sting published an article last week under the title “More unemployment and lower wages to make European workers competitive?” It reported Eurostat’s estimate for February 2013, that in the 17 Eurozone countries 19.071 million people were without a job altogether. That was a round 12% of the labour force. However in order to arrive at an overall unemployment plus underemployment percentage one honest statistician has to add the people who wish to work more, but don’t find a full-time job. That gives us an over-all estimate of unemployment in Eurozone of the order of 16%.

What about the countries with problems? Not to forget that the highest unemployment rates are being recorded in Greece (26.4 % in December 2012), Spain (26.3%) and Portugal (17.5%). Now, Eurostat tells us that “In 2012, the largest proportions of people wishing to work more hours and available to do so among part-time workers were found in … Greece (66%), Spain (55%), Latvia (53%) and Cyprus (50%). On the other hand, the smallest proportion was found in the Netherlands (3%), where part-time working is the most common, followed by Estonia (8%) and the Czech Republic (10%).

Permanently lost

Eurostat takes its present research a step forward by trying to estimate the number of people available to work but belonging to the group of the economically inactive population (those persons neither employed nor unemployed). According to the same source there were 8.8 million persons aged 15 to 74, but not seeking and 2.3 million seeking work, but not available in the EU27 in 2012”. Despite not participating in the economically active population, those persons have a strong attachment to the labour market. Together these two groups constitute a potential additional labour force of 11 million people. In the EU27 these two groups were equivalent to 4.6% of the labour force, a percentage varying between Member States, from 1.5% in the Czech Republic to 12.1% in Italy.

Obviously there exist more people who wish to work but don’t find a job. In reality they must be added to the overall unemployment rate, because all those more millions would take up productive employment, if the labour mark gave them a chance. In short the overall unemployment rate is 16% + 4.6% = 20.6%. Then one can imagine what really happens in Greece and Spain where the standard unemployment rate is 27% (Eurozone average 12%). Reality there must be real truly appalling. Large parts of the younger and the older being unemployed for more than a year, must be counted as permanently lost from labour market. This will be an insurmountable impediment to growth, if and when the good times come again.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Lorenzo Natali Media Prize 2019: winners of EU’s development journalism award unveiled

World Bank downgrades global growth forecasts, poorest countries hardest hit

Do the giant banks ‘tell’ Britain to choose a good soft Brexit and ‘remain’ or else…?

EU Elections: new rules to prevent breaches of data used to influence elections

Youth policy in Europe not delivering for young people

10 things Europe does better than the rest of the world

Britain aligns with EU rivaling US on trade and Iran, abandons bilateral ‘Midsummer Night’s Dream’

Three ways the Fourth Industrial Revolution is shaping geopolitics

Stigmatized, shunned and shamed, International Widows’ Day draws attention to their unique needs

‘All atrocity crimes are preventable’ and can never be justified – UN chief

OECD sees global growth slowing, as Europe weakens and risks persist

A ‘strong and united Europe’ has never been more needed, declares UN chief Guterres

First peaceful transfer of power in DR Congo ‘an extraordinary opportunity’ for advancing rights

No agreement in sight on EU budget

Streaming music isn’t as green as you might think. Here’s why

ECOFIN: Protecting bankers and tax-evaders

UN’s Guterres condemns ongoing airstrikes on Syria’s hospitals, medical workers

Portugal: Budget MEPs back €4.66 m in job-search aid for 730 redundant workers

Friday’s Daily Brief: UN chief in China, counter-terrorism, updates from Bangladesh, Mali and Mozambique

UN sounds alarm as Venezuelan refugees and migrants passes three million mark

Migration crisis update: The “Habsburg Empire” comes back to life while EU loses control

Britain, EU take edgy steps to unlock Brexit talks as the war of words rages

Summer pause gives time to rethink Eurozone’s problems

Why Indian students are going abroad to become Doctors?

Germany objects to EU Commission’s plan for a Eurozone bank deposits insurance scheme but Berlin could go along

Fragile countries risk being ‘stuck in a cycle of conflict and climate disaster,’ Security Council told

MasterCard @ MWC14: Innovation in times of regulatory uncertainty

GREXIT final wrap-up: nobody believed Aesop’s boy who cried wolf so many times

Consumer product quality: Parliament takes aim at dual standards

Agreement reached on new EU measures to prevent electricity blackouts

Brussels to point the finger to Washington for lack of commitment over TTIP

Russia – US in Syria: Selling Afrin to Turkey but facing off ruthlessly for Ghouta

France is bringing back national service

Civilians ‘must never be a target,’ says UN in Afghanistan, amid troubling number of casualties during Ramadan

Samsung’s profits fall as cheaper smartphones gain market share

The EU bows to Turkey in view of the talks for a political settlement in Syria

The miserables and the untouchables of the economic crisis

Lack of investment and ambition means Youth Guarantee not reaching potential

Can ECB’s €60 billion a month save Eurozone?

Somalia’s population, international partners must be energized to sustain country’s ‘upward trajectory,’ says senior UN official

MEPs want to ensure sufficient funding for Connecting Europe’s future

The EU finally seizes the opportunity to support the sharing economy?

The EU checks the multinationals for tax fraud but Britain may sail out of the EU via Panama

A male gynecologist in Iraq: red line violated

Lack of access to clean water, toilets puts children’s education at risk, says UN

Social Committee teaches Van Rompuy a lesson

Vulnerable young people must not be blamed & stigmatised for violent radicalisation

Data Protection Regulation one year on: 73% of Europeans have heard of at least one of their rights

European Fund for Transition to support more workers made redundant

European Semester 2018 Spring Package: Commission issues recommendations for Member States to achieve sustainable, inclusive and long-term growth

World Food Programme accesses Yemeni frontline district for first time since conflict began

EU Border and Coast Guard: new corps of 10 000 border and coast guards by 2027

Anti-vaccination movement affecting youth in Europe

These are the countries where most adults still don’t have a smartphone

Cambodia: Giving back to UN peacekeeping

Low quality healthcare is increasing the burden of illness and health costs globally

‘Historic’ moment: Palestine takes reins of UN coalition of developing countries

Member States and Commission to work together to boost artificial intelligence “made in Europe”

The unique role of business in building social good

Reintegrating former rebels into civilian life a ‘serious concern’ in Colombia: UN Mission chief

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s