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Remember the days Europe, particularly contintental Europe, stood synonymous with double-digit unemployment rates? It has largely gone by unnoticed but those days are quite firmly over: not one single West-European country still has double-digit unemployment rates, not even the slowdown after 2000 has changed this. Even perennial wastelands such as Spain (who's unemployment rate peaked at 19.5% in '94) has a rate of a 'mere' 8.3% today. The Eurozone's unemployment rate peaked at 10.6% also in '94, fell to a low of 7.9% in 2001, and stand at 8% now. It looks quite likely it will firmly move below 8% the next couple of years.
The only false note is that of Germany, who's performance has been obscuring that of the rest of Europe: from a low of 6.4% in '92 to a high of 9.5% in '05, and 8.2% now.
If you suspect this is the result of people moving out of the labour market, that is not correct: employment rates have been moving up year after year in the Eurozone, not even the soft-patch in 2002-03 put a dent in employment. So whereas the US had an employment rate of 72% in '94 and the Eurozone one of 59.4%, the respective rates stood at 71.2% and 63% in '04. And by the 3rd quarter of 2005 the employment rate in Eurozone had already moved up to 63.8%. (I don't have corresponding figures for the US)
Again Spain's performance has been remarkable, from a law of 46.1% in '94 to 63.9% in the 3rd quarter of '05. And again Germany's performance has been disappointing, essentially staying put over this time period.
And if you wonder that the employment rate crept up because the working-age population declined: it really is the result of actual job-creation. Ever since '94 the amount people that are employed has grown, again even during the sluggish years after 2000.
It's a ***** to find decent numbers but the number of jobs that have been created must amount to millions. If the Eurozone's employment rate had still been 57-58% today, there would have 8 million jobs less.
It's unfortunate however, that a large chunk of this employment growth came from part-time and temporary jobs. Regulations regarding these have been liberalised across Europe, which has stimulated companies to resort to part-time and temporary contracts to avoid the red-tape on full-time employment. It has created jobs, but it remains a second-best solution, for employers as well as for employees.
PS: I'm using employment statistics according to Eurostat standards, which are based on ILO standards and internationally comparable. Employment figures from national agencies may be different.
The only false note is that of Germany, who's performance has been obscuring that of the rest of Europe: from a low of 6.4% in '92 to a high of 9.5% in '05, and 8.2% now.
If you suspect this is the result of people moving out of the labour market, that is not correct: employment rates have been moving up year after year in the Eurozone, not even the soft-patch in 2002-03 put a dent in employment. So whereas the US had an employment rate of 72% in '94 and the Eurozone one of 59.4%, the respective rates stood at 71.2% and 63% in '04. And by the 3rd quarter of 2005 the employment rate in Eurozone had already moved up to 63.8%. (I don't have corresponding figures for the US)
Again Spain's performance has been remarkable, from a law of 46.1% in '94 to 63.9% in the 3rd quarter of '05. And again Germany's performance has been disappointing, essentially staying put over this time period.
And if you wonder that the employment rate crept up because the working-age population declined: it really is the result of actual job-creation. Ever since '94 the amount people that are employed has grown, again even during the sluggish years after 2000.
It's a ***** to find decent numbers but the number of jobs that have been created must amount to millions. If the Eurozone's employment rate had still been 57-58% today, there would have 8 million jobs less.
It's unfortunate however, that a large chunk of this employment growth came from part-time and temporary jobs. Regulations regarding these have been liberalised across Europe, which has stimulated companies to resort to part-time and temporary contracts to avoid the red-tape on full-time employment. It has created jobs, but it remains a second-best solution, for employers as well as for employees.
PS: I'm using employment statistics according to Eurostat standards, which are based on ILO standards and internationally comparable. Employment figures from national agencies may be different.
I am now trying to use that to leverage myself into a better position...
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