UNEMPLOYMENT: Structural + Cyclical

images-2   To add up to our post of 25th March on unemployment for the next two years, please have a look at the chart published on the Economist * that also compares the growth rate for that period. We found that the countries more hit by the global financial crisis, with higher rates of unemployment are the ones that have the lower rates of growth, just to take a few examples:

Unemployment 2015 Growth rate 2016
Spain 23,4% 2,0%
Greece 26% 2,7%
France 10,2% 1,4%
Italy 12,6% 1,1%
Netherlands 8,9% 1,6%

The above shows clearly the unsustainable of this situation because of the huge gap between the forecast of economic growth and rates of unemployment, which generates a labour market not able to support the current demands of job seekers. In addition, such a long period of persistent high rates of unemployment generate cyclical + structural unemployment as the skills of the workers become obsolete and even in a recovery they´ll not match the requirements of a new reorganized labour market. Is in that sense that labour mobility among European countries will become key to sustain the EU market as a whole for the next years. New structural changes challenges are expecting the EU economy; just by raising rates of economic growth will not be fulfilled. See chart: * http://www.economist.com/news/economic-and-financial-indicators/21646777-output-prices-and-jobs  

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