The Impact of COVID-19 on European Unemployment and Labor Market Slack

15 Pages Posted: 17 Jan 2021

See all articles by Elif Beyza Sazmaz

Elif Beyza Sazmaz

Middle East Technical University (METU)

Irem Ozkok

Middle East Technical University (METU)

Huseyin Simsek

Middle East Technical University (METU)

Osman Gulseven

Skyline University College Sharjah; Middle East Technical University (METU) - Department of Economics

Date Written: January 14, 2021

Abstract

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

Suggested Citation

Sazmaz, Elif Beyza and Ozkok, Emine Irem and Simsek, Huseyin and Gulseven, Osman, The Impact of COVID-19 on European Unemployment and Labor Market Slack (January 14, 2021). Available at SSRN: https://ssrn.com/abstract=3766376 or http://dx.doi.org/10.2139/ssrn.3766376

Elif Beyza Sazmaz

Middle East Technical University (METU) ( email )

Çankaya/Ankara
Turkey

Emine Irem Ozkok (Contact Author)

Middle East Technical University (METU) ( email )

Çankaya/Ankara
Turkey

Huseyin Simsek

Middle East Technical University (METU) ( email )

Çankaya/Ankara
Turkey

Osman Gulseven

Skyline University College Sharjah ( email )

Sharjah, 1797
United Arab Emirates

Middle East Technical University (METU) - Department of Economics ( email )

Inonu Bulvari
Ankara
Turkey

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