Over the past six years, long-term unemployment in Europe reported strong growth. About half of the 25 million. Unemployed in the old continent without work for more than a year. Over 12% have not worked more than four years, says Economist.
Along with increasing levels of poverty, the problem brings additional difficulties that can make it a self-sustaining unemployment. Skills are forgotten, confidence disappears fertility slows and the risk of ill health increases. The challenge for policymakers is to prevent the conversion of that cyclical unemployment into structural.
Not surprisingly, the problem is particularly acute in Southern Europe. More than 60% of unemployed Italians have not worked for over a year, while in Greece it amounts to 70%. High levels of long-term unemployment are partly due to the fact that Italy as a whole has high levels of unemployment as a result of the severe recession and rigid labor markets. Moreover, economic problems powered political. Unemployed people are much more likely to not trust the politicians and the European Union (EU). This, in turn, strengthens the positions of the more eurosceptic and populist.
The problem is particularly serious in the new EU member states from Eastern Europe. But unlike Southern Europe, many of these countries have recent experience with high long-term unemployment because of the recession at the end of last century and beginning of this. In some places, however, long-term unemployment has remained despite the economic recovery.
Slovakia went through a serious resetsiya in 1999, but economic growth from 2000 to 2007 to accelerate, while unemployment fell. Yet the number of permanently unemployed grow and amounted to 75% of total unemployment as employees who have lost their jobs in the bad years, they were recruited after economic conditions have improved.
In the richer parts of Europe, both long and short-term unemployment are less of a problem.
Germany only in the EU has decreased as the level of total unemployment and long-term since 2009 thanks to their flexible labor market (and not so generous unemployment benefits). In contrast, Ireland, which was devastated by the banking crisis, difficulties with the return of long-term unemployed back to work. Although the level of general unemployment fell, about 100 000 people (or 42% of those in line at the employment offices) are unemployed for more than two years.
As almost always, Scandinavia presents the best in Europe. The three Nordic EU countries have the lowest levels of long-term unemployment - between 19% and 25% of total unemployment. These low levels are partly a result of milder recessions and measures of the labor market. Sweden, for example, introduced training schemes and tax credits in the construction industry who helped skills in this sector to maintain and stimulate demand. But against the background of high unemployment in the rest of Europe politicians will have to make a lot more than that to return long-term unemployed back to work.