High unemployment rates and other current problems of the EU labour markets
High unemployment rates and other current problems of the EU labour markets

Summary/Abstract: Unemployment rates in many EU member states constantly show very high values. Since mid-2008 and the beginning of the world economic crisis unemployment started to represent one of the major problems for EU economies. Main factors which caused high unemployment rates were as follows: spillover effect of the crisis from the USA to the EU, the fall in production which led to massive layoffs and a rise in public debts in member states significantly above fiscal criteria of convergence. Rapid ageing of population in EU and social problems conditioned by that as well as high rigidity on EU labour markets were also determinants which directly exerted an impact on changes in unemployment rates. In the same period, employment rates also fall significantly. The level of wages and duration of working time decreased in those countries where there was high flexibility on labour markets, despite often pressures from national trade union that their values should stay at the pre-recession levels. Altogether, this led to a decrease in purchasing power and consequently, to a fall in the standard of living of EU citizens. That caused massive protests of workers, followed by other social and age categories of people in the EU.

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