News
BackOn January 8, 2014, the Statistical Office of the European Communities (Eurostat) published the current unemployment figures in the EU Member States. However, it did not come as a surprise that Eurostat was unable to present any positive developments. On the contrary, it once again became clear that the European states are in a deep social crisis. The drastic austerity measures prescribed are obviously not an effective way out of the misery. Apart from that, the mild calculation method by Eurostat obscures the true extent of the catastrophic situation on the European labour market.
No change of course
For November 2013, Eurostat establishes an average unemployment rate of 10.9 % in the 28 Member States of the EU, whilst at 12.1 % the figures for the Eurozone are considerable worse. Looking back at the data for November 2012, it becomes clear: unemployment in Europe continues to rise significantly. Compared to the period in question, an additional number of 280,000 people in the EU-28 states have lost their job.
European frontrunner in a positive sense is Austria with 4.8 %, whilst Spain (26.7 %) and Greece (27.4 %), both of which are facing major employment policy problems, are trailing behind in last position.
Austria’s performance: a painful top rank
At first glance, the figures for Austria are comparatively positive, as this EU member state, having the lowest unemployment rate, is even positioned before Germany (5.2 %) and Luxembourg (6.1 %). However, this picture hides the fact that unemployment in Austria is also on the rise; in November 2012 it was still at 4.5 %. Numerically, this extremely mild calculation method by Eurostat reveals on closer inspection that unemployment figures in Austria have risen by 12,000. However, a more detailed analysis shows that the Eurostat figures hide the true extent of the miserable situation on the labour market in Austria and in Europe in general.
How are these figures calculated?
In order to be able to correctly interpret the Eurostat results one has to start by looking at the calculation method applied, which is basically divided into two categories: labour force and inactive people. The first group includes people in work, but also the unemployed, whilst the second category incorporates young people of school age or persons who are unable to work.
Based on this differentiation, Eurostat calculates the unemployment rate as follows. The share of the labour force that is regarded as unemployed, was without a job during the survey period, was available to start work within two weeks and was, apart from that, actively looking for work during the four-week period prior to the calculation. In addition, only persons between 15-74 years of age are included.
However, a person is already regarded as being gainfully employed if he or she has only worked one single hour during the reference week. Another difference to the calculation method of the Public Employment Service Austria (AMS) is that self-employed and part-time employed persons are also included in the statistics. According to AMS figures, at 8 %, unemployment in Austria is nearly twice as high as the Eurostat study suggests. Numerically, this means more than 300,000 people were unemployed in November 2013, the highest value in decades. In addition, there were about 70,000 people attending training courses by the end of 2013 who are technically not included in the official unemployment statistics.
Problem area: youth unemployment
The analysis of youth unemployment in Europe is alarming, in spite of the mild calculation method of Eurostat. About every fourth young person in the Eurozone and in the 28 countries of the EU is out of work. Compared to November 2012, in 2013, hence a year later, these numbers have slightly fallen across Europe; however, in particular in the Eurozone they are stagnating at an alarming unchanged high level. At 8.6 %, Austria is in second place behind Germany (7.5 %). Last are once again Spain (57.7 %) and Greece (54.8 %), whereby the figures for Greece in the absence of current data, refer to September 2013.
Women and men by comparison
Europe-wide unemployment among men has gradually increased and is now at the same level as the stagnating women’s unemployment rate (Eurozone: 12.1 %; EU-28: 10.9 %). Based on its slightly falling unemployment rate (4.6 %) with regard to men, Austria is the European benchmark; the unemployment rate concerning women stands at 5 %, and is therefore behind Germany in close second place.
Once again, there is little surprise to find Spain and Greece in the position as negative frontrunners; here about every fourth man and every fourth woman is out of work. However, in both countries, women are significantly more affected by unemployment.
Conclusion
All in all, the latest figures by Eurostat concerning unemployment in Europe are devastating. The rigid austerity methods have not brought the promised boom. Hence, not only has the situation on the labour market not seen any improvements; on the contrary, it seems to go from bad to worse. In particular young women in countries most affected by the crisis, such as Spain, Greece or Cyprus are suffering as a result of this devastating development. Even though, compared to the European average, Austria is in a comparatively favourable position; nevertheless the highest unemployment rate for decades has to be tackled. According to the AMS calculation method, current data is even more striking. In reality, unemployment figures for Austria are twice as high. In addition, one has again to take into account persons attending training courses.
Thus the calculation method applied by Eurostat is more than questionable. Such a soft approach plays down the rampant mass unemployment in Europe, thereby glossing over the serious impact of the austerity policy.
Further Information
Eurostat press release: Unemployment rate in the EU
For November 2013, Eurostat establishes an average unemployment rate of 10.9 % in the 28 Member States of the EU, whilst at 12.1 % the figures for the Eurozone are considerable worse. Looking back at the data for November 2012, it becomes clear: unemployment in Europe continues to rise significantly. Compared to the period in question, an additional number of 280,000 people in the EU-28 states have lost their job.
European frontrunner in a positive sense is Austria with 4.8 %, whilst Spain (26.7 %) and Greece (27.4 %), both of which are facing major employment policy problems, are trailing behind in last position.
Austria’s performance: a painful top rank
At first glance, the figures for Austria are comparatively positive, as this EU member state, having the lowest unemployment rate, is even positioned before Germany (5.2 %) and Luxembourg (6.1 %). However, this picture hides the fact that unemployment in Austria is also on the rise; in November 2012 it was still at 4.5 %. Numerically, this extremely mild calculation method by Eurostat reveals on closer inspection that unemployment figures in Austria have risen by 12,000. However, a more detailed analysis shows that the Eurostat figures hide the true extent of the miserable situation on the labour market in Austria and in Europe in general.
How are these figures calculated?
In order to be able to correctly interpret the Eurostat results one has to start by looking at the calculation method applied, which is basically divided into two categories: labour force and inactive people. The first group includes people in work, but also the unemployed, whilst the second category incorporates young people of school age or persons who are unable to work.
Based on this differentiation, Eurostat calculates the unemployment rate as follows. The share of the labour force that is regarded as unemployed, was without a job during the survey period, was available to start work within two weeks and was, apart from that, actively looking for work during the four-week period prior to the calculation. In addition, only persons between 15-74 years of age are included.
However, a person is already regarded as being gainfully employed if he or she has only worked one single hour during the reference week. Another difference to the calculation method of the Public Employment Service Austria (AMS) is that self-employed and part-time employed persons are also included in the statistics. According to AMS figures, at 8 %, unemployment in Austria is nearly twice as high as the Eurostat study suggests. Numerically, this means more than 300,000 people were unemployed in November 2013, the highest value in decades. In addition, there were about 70,000 people attending training courses by the end of 2013 who are technically not included in the official unemployment statistics.
Problem area: youth unemployment
The analysis of youth unemployment in Europe is alarming, in spite of the mild calculation method of Eurostat. About every fourth young person in the Eurozone and in the 28 countries of the EU is out of work. Compared to November 2012, in 2013, hence a year later, these numbers have slightly fallen across Europe; however, in particular in the Eurozone they are stagnating at an alarming unchanged high level. At 8.6 %, Austria is in second place behind Germany (7.5 %). Last are once again Spain (57.7 %) and Greece (54.8 %), whereby the figures for Greece in the absence of current data, refer to September 2013.
Women and men by comparison
Europe-wide unemployment among men has gradually increased and is now at the same level as the stagnating women’s unemployment rate (Eurozone: 12.1 %; EU-28: 10.9 %). Based on its slightly falling unemployment rate (4.6 %) with regard to men, Austria is the European benchmark; the unemployment rate concerning women stands at 5 %, and is therefore behind Germany in close second place.
Once again, there is little surprise to find Spain and Greece in the position as negative frontrunners; here about every fourth man and every fourth woman is out of work. However, in both countries, women are significantly more affected by unemployment.
Conclusion
All in all, the latest figures by Eurostat concerning unemployment in Europe are devastating. The rigid austerity methods have not brought the promised boom. Hence, not only has the situation on the labour market not seen any improvements; on the contrary, it seems to go from bad to worse. In particular young women in countries most affected by the crisis, such as Spain, Greece or Cyprus are suffering as a result of this devastating development. Even though, compared to the European average, Austria is in a comparatively favourable position; nevertheless the highest unemployment rate for decades has to be tackled. According to the AMS calculation method, current data is even more striking. In reality, unemployment figures for Austria are twice as high. In addition, one has again to take into account persons attending training courses.
Thus the calculation method applied by Eurostat is more than questionable. Such a soft approach plays down the rampant mass unemployment in Europe, thereby glossing over the serious impact of the austerity policy.
Further Information
Eurostat press release: Unemployment rate in the EU