Euro Area Labour Markets and the Crisis

122 Pages Posted: 6 Nov 2012

See all articles by Robert Anderton

Robert Anderton

European Central Bank (ECB)

Mario Izquierdo

Banco de España

Ted Aranki

European Central Bank (ECB)

Boele Bonthuis

University of Amsterdam; Deutsche Bundesbank

Katarzyna Barbara Budnik

European Central Bank (ECB) - Directorate Financial Stability and Supervision

Ramon Gomez Salvador

European Central Bank (ECB)

Valerie Jarvis

European Central Bank (ECB)

Ana Lamo

European Central Bank (ECB)

Aidan Meyler

European Central Bank (ECB); Economist; Post graduate student

Daphne Momferatou

European Central Bank (ECB)

Roberta Serafini

European Central Bank (ECB)

Magdalena Spooner

European Central Bank (ECB)

Martine Druant

National Bank of Belgium

Jan De Mulder

National Bank of Belgium

Katja Sonderhof

Leibniz Universität Hannover

Daniel Radowski

Deutsche Bundesbank

Orsolya Soosaar

Bank of Estonia

Natalja Viilmann

Bank of Estonia

Suzanne Linehan

Central Bank and Financial Services Authority of Ireland

Daphne Nicolitsas

Bank of Greece

Sergio Puente

Banco de España

Cristina Fernandez

affiliation not provided to SSRN

Gregory Verdugo

Université Paris I Panthéon-Sorbonne - Centre d'Economie de la Sorbonne (CES)

Matteo Mogliani

Banque de France

Henri Fraisse

Banque de France

Roberta Zizza

Bank of Italy

Michalis Ktoris

Central Bank of Cyprus

Cindy Veiga Nunes

Banque Centrale du Luxembourg

Muriel Bouchet

Banque Centrale du Luxembourg

Sandra Zerafa

affiliation not provided to SSRN

Ian Sapiano

affiliation not provided to SSRN

Marco Hoeberichts

De Nederlandsche Bank - Research Department

Jante Parlevliet

De Nederlandsche Bank

Alfred Stiglbauer

Austrian National Bank

Paul Ramskogler

Oesterreichische Nationalbank (OeNB)

Jose Maria

Bank of Portugal

Claudia Duarte

affiliation not provided to SSRN

Manca Jesenko

Bank of Slovenia

Helena Solcanska

National Bank of Slovakia

Pavel Gertler

National Bank of Slovakia

Juuso Vanhala

Bank of Finland

Heidi Schauman

Bank of Finland

Date Written: October 1, 2012

Abstract

Between the start of the economic and financial crisis in 2008, and early 2010, almost four million jobs were lost in the euro area. Employment began to rise again in the first half of 2011, but declined once more at the end of that year and remains at around three million workers below the pre-crisis level. However, in comparison with the severity of the fall in GDP, employment adjustment has been relatively muted at the aggregate euro area level, mostly due to significant labour hoarding in several euro area countries. While the crisis has, so far, had a more limited or shorter-lived impact in some euro area countries, in others dramatic changes in employment and unemployment rates have been observed and, indeed, more recent data tend to show the effects of a reintensification of the crisis. The main objectives of this report are: (a) to understand the notable heterogeneity in the adjustment observed across euro area labour markets, ascertaining the role of the various shocks, labour market institutions and policy responses in shaping countries’ labour market reactions; and (b) to analyse the medium-term consequences of these labour market developments. With these objectives in mind, the SIR Task Force has carried out several specific exercises (e.g. it has conducted a questionnaire among euro area National Central Bank (NCB) experts on main policy measures adopted since the start of the crisis; it has updated a previous Wage Dynamics Network (WDN) questionnaire on wage bargaining institutions in euro area countries; and it has computed worker flows series from Labour Force Survey (LFS) microdata available at most euro area NCBs).

Keywords: labour demand, labour supply, employment, unemployment, participation, euro area countries, crisis, heterogeneity, labor market flows, working time, wages, collective bargaining, labour market institutions, rigidities, structural unemployment, mismatch, beveridge curve, hysteresis, NAIRU

JEL Classification: J2, J3, J6

Suggested Citation

Anderton, Robert and Izquierdo, Mario and Aranki, Ted and Bonthuis, Boele and Budnik, Katarzyna Barbara and Salvador, Ramon Gomez and Jarvis, Valerie and Lamo, Ana and Meyler, Aidan and Momferatou, Daphne and Serafini, Roberta and Spooner, Magdalena and Druant, Martine and De Mulder, Jan and Sonderhof, Katja and Radowski, Daniel and Soosaar, Orsolya and Viilmann, Natalja and Linehan, Suzanne and Nicolitsas, Daphne and Puente, Sergio and Fernandez, Cristina and Verdugo, Gregory and Mogliani, Matteo and Fraisse, Henri and Zizza, Roberta and Ktoris, Michalis and Veiga Nunes, Cindy and Bouchet, Muriel and Zerafa, Sandra and Sapiano, Ian and Hoeberichts, Marco M. and Parlevliet, Jante and Stiglbauer, Alfred and Ramskogler, Paul and Maria, Jose and Duarte, Claudia and Jesenko, Manca and Solcanska, Helena and Gertler, Pavel and Vanhala, Juuso and Schauman, Heidi, Euro Area Labour Markets and the Crisis (October 1, 2012). ECB Occasional Paper No. 138. Available at SSRN: https://ssrn.com/abstract=2155001

Robert Anderton (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
0049 69 13440 (Phone)
0044 69 1344 6000 (Fax)

Mario Izquierdo

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Ted Aranki

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Boele Bonthuis

University of Amsterdam ( email )

Spui 21
Amsterdam, 1018 WB
Netherlands

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Katarzyna Barbara Budnik

European Central Bank (ECB) - Directorate Financial Stability and Supervision ( email )

Kaiserstrasse 29
D-60311 Frankfurt am Main
Germany

Ramon Gomez Salvador

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Valerie Jarvis

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Ana Lamo

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Aidan Meyler

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Economist

P.O. 559 Dame Street
Dublin 2, D2
Ireland

Post graduate student

United States

Daphne Momferatou

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Roberta Serafini

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Magdalena Spooner

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Martine Druant

National Bank of Belgium ( email )

Brussels, B-1000
Belgium

Jan De Mulder

National Bank of Belgium ( email )

Brussels, B-1000
Belgium

Katja Sonderhof

Leibniz Universität Hannover ( email )

Institut fur Rechnungslegung und WP
Koenigsworther Platz 1
Hannover, 30167
Germany

Daniel Radowski

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Orsolya Soosaar

Bank of Estonia ( email )

Estonia Building 13
15095 Tallinn
Estonia

Natalja Viilmann

Bank of Estonia ( email )

Estonia Building 13
15095 Tallinn
Estonia

Suzanne Linehan

Central Bank and Financial Services Authority of Ireland ( email )

P.O. 559 Dame Street
Dublin 2, D2
Ireland

Daphne Nicolitsas

Bank of Greece ( email )

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

Sergio Puente

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Cristina Fernandez

affiliation not provided to SSRN ( email )

Gregory Verdugo

Université Paris I Panthéon-Sorbonne - Centre d'Economie de la Sorbonne (CES) ( email )

106-112 Boulevard de l'hopital
106-112 Boulevard de l'Hôpital
Paris Cedex 13, 75647
France

Matteo Mogliani

Banque de France ( email )

Paris
France

Henri Fraisse

Banque de France ( email )

Paris
France

Roberta Zizza

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Michalis Ktoris

Central Bank of Cyprus ( email )

80 Kennedy Ave
1076 Nicosia
Cyprus

Cindy Veiga Nunes

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Muriel Bouchet

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Sandra Zerafa

affiliation not provided to SSRN ( email )

Ian Sapiano

affiliation not provided to SSRN ( email )

Marco M. Hoeberichts

De Nederlandsche Bank - Research Department ( email )

P.O. Box 98
1000 AB Amsterdam
Netherlands
+31-20-524 2890 (Phone)
+31-20-524 2529 (Fax)

Jante Parlevliet

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Alfred Stiglbauer

Austrian National Bank ( email )

Otto-Wagner Platz 1
A-1011 Vienna
Austria

Paul Ramskogler

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3, PO Box 61
Vienna,
1010 Vienna, A-1011
Austria

Jose Maria

Bank of Portugal ( email )

Rua Francisco Ribeiro, 2
Lisbon, 1150-165
Portugal

Claudia Duarte

affiliation not provided to SSRN ( email )

Manca Jesenko

Bank of Slovenia ( email )

Slovenska cesta 35
Slovenija, 1505
Slovenia

Helena Solcanska

National Bank of Slovakia ( email )

Imricha Karvasa 1
813 25 Bratislava
Slovakia

Pavel Gertler

National Bank of Slovakia ( email )

Imricha Karvasa 1
813 25 Bratislava, 813 25
Slovakia

Juuso Vanhala

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Heidi Schauman

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

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