In its review covering the fourth quarter of 2014, the EU Commission - not unexpectedly - establishes a further improvement of the labour market situation in Europe. With the exception of Greece and Cyprus, all Member States are experiencing economic growth, unemployment figures are declining and the rate of employment is on the increase. For the first time since 2009, long-term unemployment has decreased; youth unemployment has been falling since 2013. However, taking a closer look is raising doubts about the optimism displayed by the EU authorities, as it has become clear that the crisis is by no means over for employees.

Unemployment will continue to be a feature in Europe

For the first time since 2013, jobs have once again been created in Europe, - employment figures are rising continuously; 2.7 million jobs were created by the end of 2014 alone. However, prior to this period (2008 to 2013), 7.4 million jobs were destroyed. If Europe continues at the speed, it will probably take about another four years to reach the level prior to the crisis. Europe as a whole currently has almost 24 million unemployed people, which means that full employment on the old continent is also a far way off. In February, the rate of unemployment in Europe stood at 9.8 %. The USA, due to her growth-oriented economic policy, have recovered far better from the crisis. There, unemployment stands at 5.5 %, which is equivalent to a rate similar in Austria (5.3 %), which EU-wide ranks in second place after Germany. As has been the case for many years, the taillights are once again Greece (26 %) and Spain (23 %). Unemployment is falling in 24 countries, whilst in 2014 an increase had to be observed in France, Croatia, Cyprus and Finland. However, many have explained the more positive rate of unemployment in Southern Europe with the massive wave of migration towards Northern Europe.

Long-term and youth unemployment is falling; full-time employment is on the increase

For the first time in 5 years, the EU Commission recorded a decline in long-term unemployment for 2014, which stood at 4.8 %. Particular affected are once again the crisis states Greece and Spain. Youth unemployment also decreased to reach a level of 21.1 %, whereby the large states, i.e. France and Italy had to record increases. Only in Central Europe (Germany, the Netherlands, Austria and Czechia), youth unemployment is at a reasonable level (below 10 %). The Commission emphasises in particular that more than half of the created jobs are based on permanent contracts; the majority of these are full-time jobs.

Economy at pre-crisis level?

The claim that in the meantime the European economy had reached pre-crisis level, unfortunately only applies to the Gross Domestic Product and not to citizens. One worrying factor among other is that compared to the EU-28, the Eurozone, which currently consists of 19 EU countries, continues to “lag behind” with regard to all indicators mentioned above as well as in respect of economic growth. This can be explained by the fact that in particular non-Euro countries, such as Sweden or Great Britain are currently showing positive economic data.

Overall - with the exception of Greece - there seems to emerge a positive trend all over Europe; however, from the view of employees its progress is far too slow - also in comparison with the United States.

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