Eurostat: Real unemployment double than the official rate

Gender distribution in selected labour categories, age 15-74, EU-28, 2012 (Eurostat graph)

graph2

Eurostat, the EU statistical service, revealed that the true unemployment rate in Eurozone during the third quarter of 2013 was much higher than the ‘officially’ recognised percentage of 11.5%, according to the definition of UN’s International Labour Organisation. Including the three forms of de facto but not recognised by the ILO unemployment definition or “halos around unemployment” as Eurostat calls it, the people without a job in Q3 of 2013 were 21.2% of the labour force. This is almost the double than the official rate.

Those three forms of real but not ‘officially recognised’ unemployment are the following: underemployed part-time workers, jobless persons seeking a job but not immediately available for work and jobless persons available for work but not seeking it. No need to mention that the youths of 15-24 years of age are mostly hit by the last two forms of unemployment. In the first category that is the unemployed part-time workers, people of 35-44 years of age are mostly hit. The predominance of women is strongest in the group of unemployed part-timers. According to Eurostat “two thirds of them are women (66.7 %) in the EU-28 in 2012 ; 6.1 million women compared with 3.1 million men “.

Quarterly supplementary indicators by Member State, 2013 third quarter (Eurostat table)

EL Greece ES Spain FR France HR Croatia (2) IT Italy CY Cyprus LV Latvia LT Lithuania LU Luxembourg HU Hungary MT Malta NL Netherlands AT Austria PL Poland PT Portugal RO Romania SI Slovenia SK Slovakia FI Finland SE Sweden UK United Kingdom IS Iceland (3) LI Liechtenstein NO Norway CH Switzerland ME Montenegro MK The former Yugoslav Republic of Macedonia (4) RS Serbia TR Turkey

BE Belgium, BG Bulgaria, CZ Czech Republic, DK Denmark, DE Germany, EE Estonia, IE Ireland,
EL Greece, ES Spain, FR France, HR Croatia, IT Italy, CY Cyprus, LV Latvia, LT Lithuania, LU Luxembourg, HU Hungary, MT Malta, NL Netherlands, AT Austria, PL Poland, PT Portugal, RO Romania, SI Slovenia, SK Slovakia, FI Finland, SE Sweden, UK United Kingdom, IS Iceland, LI Liechtenstein, NO Norway, CH Switzerland, ME Montenegro,  MK The former Yugoslav Republic of Macedonia, RS Serbia, TR Turkey

It’s unbelievable how much larger is the truly unemployed part of the labour force in the south Eurozone countries, which are particularly hit by the economic crisis and the subsequent severe austerity measures, imposed on them by Brussels and Berlin. In Spain, with the officially recognised unemployment rate at 26% one has to add another 6.4% of underemployed part-time workers, plus 5.1% of people not seeking a job but available for work and another 1% of seeking but not available. That makes a total of a killing 38.5% of the labour force without labour. In Greece with the official rate at 27%, the unemployed part-timers are another 4.3%, plus 1.9% of persons available but tired of seeking and 0.7% of seeking but not immediately available. That makes a total of 33.9%.

Unofficially unemployed

A quick observation is that those ‘unofficial’ but quite real forms of unemployment may completely change the image and the comparison between countries. Spain, with the 38.5% of the working population without productive employment compares negatively to Greece where the relevant figure is 33.9%. Despite the fact that official unemployment in Spain is one percentage point lower than the corresponding figure for Greece.

It is also of importance to mention that countries like Germany with ostensibly very low official unemployment percentages are not spared from real unemployment. In the case of Germany, where the official unemployment is only 5.2%, there is another, almost equally important percentage of unemployed part-timers of 4.1% of the labour force, plus 1.3% of seeking but not available and another 1.3% of people available but not seeking for employment. Add those four percentages and you arrive at 11.9%, which is a quite important part of the labour force.

The same is true for Britain. Staring with a rather low percentage of official unemployment at 7.7%, one has to add an important percentage of part-timers without a job at 6% of the labour force, plus the available but not seeking at 2.5% and the seeking but unavailable at 1.1%. All those percentages make a full 17.3% of people without a job. Again, as in the case of Germany, the real unemployment percentage is much higher than the official rate.

More unemployed part-timers

This discrepancy between real and official unemployment seems to be proportionally higher in the more advanced economies than in the south of Eurozone. The reason is that more people are taking up part-time jobs in the north of Europe, than in the more traditionally structured societies of the south. Given that the part-time jobs are more insecure and that advanced economies tend to offer analogically more such jobs than the south of Europe, north EU countries are facing larger percentages of unemployed part-timers. In both Germany and Britain official unemployment tends to be almost equal to part-time unemployment.

In any case those ‘unofficial’ forms of unemployment are sending the real percentages to terrifying highs. In the case of Spain and Greece real unemployment hovers freely between 30% and 40%, unthinkable rates only a few years ago. Even at their worst moments, during the past forty years, those countries had never experienced such a destruction.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

MWC 2016 LIVE: GTI shifts to phase two – 5G – after hitting milestones

IMF: How can Eurozone avoid stagnation

Britain and Germany change attitude towards the European Union

When is Berlin telling the truth about the EU banking union?

EU sets ambitious targets for the Warsaw climate conference

Parliament votes reform for better European Co2 market but critics want it sooner than later

Global Citizen-Volunteer Internships

Europe is now practically divided as in the Cold War

It’s EU vs. Google for real: the time is now, the case is open

A sterilised EMU may lead to a break up of Eurozone

European financial values on the rise

The European Parliament floating over the South China Sea

Can the banking union help Eurozone counter its imminent threats?

Regional competitiveness and growth: a Gordian knot for Europe

Access to health in the developping world

A week to decide if the EU is to have a Banking Union

American negotiators can’t pay for their trip to Brussels, EU-US trade agreement freezes

Samsung’s profits fall as cheaper smartphones gain market share

EU opens a third antitrust file against Google

Eurozone: GDP development heads to naught; the expensive euro serves only Germany

EU Parliament shows its teeth in view of 2014 elections

More solidarity and interaction between generations needed to challenge age stereotypes and ingrained ageism

“Only through energy policy we can trigger competitiveness”. The Sting live from #EBS2015: Energy Union – When will it happen?

Eurozone: A crucial January ahead again with existential questions

The strong version of the EU banking union gains momentum

China-EU Special Report: Chinese Premier Li Keqiang endorses China’s big investment on Juncker’s plan at 10th China-EU Business Summit

Britain in and out of the EU

The three sins the EU committed in 2015

The ASEAN Community sees the light: the genesis of a new powerful economic and political bloc and EU’s big opportunity

Bureaucracy in the member states again the obstacle for long due strong European Hedge Funds

ECB’s Draghi favours a cheaper euro to serve all Eurozone countries

Amazon, a pair of shoes and my Data Privacy walks away

Draghi will not hesitate to zero ECB’s basic interest rate

Can Eurozone’s uncertain growth answer the challenges that lie ahead?

Does the EU want GMOs and meat with hormones from the US?

The banks want now free capital from taxpayers

The ECB tells Berlin that a Germanic Eurozone is unacceptable and doesn’t work

Public opinion misled by the Commission on air transport safety

European welfare states are failing young people

Draghi drafts a plan to donate more money to bankers, the era of ‘money for nothin’ is flourishing

No better year for the EU’s weak chain links

The EU moulds a new compromise for growth and financial sustainability

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

How much time has the ‘European Union of last chance’ left?

Youth policy in Europe not delivering for young people

Counting spillovers from the fast track EU-US free trade agreement

Utmost hypocrisy emitted by EU’s energy regulation

Snowden is the “EU nomination” for this year’s Oscars

The European Sting at the Retail Forum for Sustainability live from Barcelona

“We need to use the momentum globally to ensure that corporations pay their fare share of taxation”, EU Commissioner Valdis Dombrovskis outlines from the World Economic Forum 2017.

More Stings?

Comments

  1. Reblogged this on Dvogled (rezervna kopija).

  2. Greetings I am so happy I found your website, I really found you
    by accident, while I was looking on Yahoo for something
    else, Anyways I am here now and would just like to say cheers for a fantastiic post and a aall round interesting blog (Ialso love the theme/design), I don’t have
    time to read it all at the minute but I have book-marked it and
    also added your RSS feeds, so when I have time I will be
    back to read a great deal more, Please do keep up the superb b.

  3. Just wish to say your article is as amazing. The clearness on your put up is just
    great and that i can suppose you’re an expert in this subject.
    Fine together with your permission let me to grasp your feed to
    keep up to date with drawing close post. Thanks
    1,000,000 and please continue the rewarding work.

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 )

Twitter picture

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

Facebook photo

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

Google+ photo

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

Connecting to %s