The Impact of COVID-19 on European Unemployment and Labor Market Slack
15 Pages Posted: 17 Jan 2021
Date Written: January 14, 2021
It is an indisputable fact that COVID-19 has changed so many aspects of our society. In this article, we investigate how COVID-19 impacted unemployment in Europe. This issue is also relevant to UN Sustainable Development Goals, which explicitly mentions eliminating poverty as an ultimate target. As a proxy for poverty elimination, we use monthly unemployment rates and labor market slackness. Our methodology makes before and after the COVID-19 analysis of the unemployment trends in five-big EU countries. These countries are Germany, Spain, France, Italy, and Poland. They are chosen based on their population. We use tabular and visual analysis to compare the impact of the COVID-19 induced economic crises on these countries' unemployment rates and labor market slackness. Our results show that while the pandemic has negatively impacted unemployment rates and labor slackness, there is a strong recovery in the labor market.
Keywords: Poverty, European countries, COVID-19, Pandemic impact, unemployment rate, socioeconomic, crisis, Euro Area, European Union, labor-force, employment
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