The Great Recession�s Biggest Losers: The euro area�s jobless

The euro area continues to recover from the Great Recession, with several recent publications offering optimistic assessments of the euro area�s economic performance. The European Commission�s �Employment and Social Developments in Europe 2017� report, for example, praises moderate economic growth and �solid net job creation� in a �job-rich recovery�. While the European Commission acknowledged ongoing challenges such as youth unemployment, it must also be recognised that the euro area�s recovery has been piecemeal. Economic growth is encouraging, but it obscures the unemployed millions who have not tasted the fruits of the recovery. The euro area�s labour market, while posting gains, remains in a worse state than before the Great Recession. Nearly half of the unemployed in the euro area have been jobless for over a year. In contrast with the United States, Japan and other regions hit hard by the crisis, the euro area�s labour market exemplifies the most enduring damage of the Great Recession. This CEPS Policy Insight argues that European lawmakers need to soberly acknowledge the job market�s failures and take targeted action, addressing the regions and demographics for whom the recovery is not working.