IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/24864.html
   My bibliography  Save this paper

Labour market prospects and policies to soften the impact of the financial crisis

Author

Listed:
  • Carone, Giuseppe
  • Koopman, Gert Jan
  • Pichelmann, Karl

Abstract

The global downturn is now strongly affecting EU labour markets. In light of the downward revision to the growth projections and the uncertainty created by the financial meltdown, the outlook for employment has deteriorated considerably. This would also be consistent with the experience from previous downturns, where the full labour market impact only materialised after 2-3 quarters. On current policies, the Commission projects employment growth to turn negative during the next two years, accompanied by a steep rise in unemployment, which would be around 11.5% in 2010 in the euro area. However, labour market outcomes depend crucially on policy responses. The good news here is that our assessment shows that measures undertaken so far within the framework of the European Economic Recovery Plan are promising. The in-built capacities of the social safety nets are fully playing their role and a number of new innovative policies are also keeping people in employment. However, given the spillovers that many of these policies create on other Member States labour market measures could be more effective if co-ordination at the European level was strengthened. A stronger more co-ordinated response would also help to soften the impact of much higher unemployment levels on Europe's potential rate of growth in the future.

Suggested Citation

  • Carone, Giuseppe & Koopman, Gert Jan & Pichelmann, Karl, 2009. "Labour market prospects and policies to soften the impact of the financial crisis," MPRA Paper 24864, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:24864
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/24864/1/MPRA_paper_24864.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. World Bank, 2010. "Croatia : Social Impact of the Crisis and Building Resilience," World Bank Publications - Reports 2903, The World Bank Group.
    2. BELEVA, Iskra, 2011. "European Labour Markets Challenges In The Context Of The „Europe 2020” Strategy," Economics 21, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 2, pages 1-13.
    3. Alina Hagiu & Emilia Ungureanu, 2010. "The Effects Of The World Economic Crisis On The Employment In The Auto Industry," Romanian Economic Business Review, Romanian-American University, vol. 5(3), pages 145-153, September.
    4. Projektgruppe Gemeinschaftsdiagnose, 2010. "The Recovery Continues - Considerable Risks Remain," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(08), pages 03-78, April.
    5. Beleva, Iskra, 2011. "The EU labour market crisis and recovery policies. The Bulgarian response to the crisis," MPRA Paper 33505, University Library of Munich, Germany.
    6. Gratiela Georgiana Carica, 2011. "A Framework Analysis Of European Labour Market Policies," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3(1), pages 13-21, March.
    7. World Bank, 2010. "Poland - Public Expenditure Review : Background Papers," World Bank Publications - Reports 2856, The World Bank Group.

    More about this item

    Keywords

    Labour market; economic crisis; financial crisis; employment; unemployment; exit strategy; Recovery plan;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24864. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.