Published by the European Bank for Reconstruction and Development.
Eurostat’s composite unemployment rate, around which the EU’s performance is based, has now fallen below 9% for the first time since May 2009. A downturn that began years ago appears to be becoming a rut. Although the recovery is gaining some momentum, the labour market still presents an obstacle to growth.
High unemployment is one issue, but there are plenty of other hurdles to take into account. Old lines of communication have deteriorated. Relationships between immigrants and locals have become more fractious. Germany, the country best prepared to integrate refugees, shows itself to be anything but welcoming to them. Businesses and their workers are paying a price.
Direct competition with Eastern Europe and Lebanon has contributed to labour shortages. Two-thirds of the four million persons in crisis in the EU are now living in an EU country. Meanwhile, deep inequalities in income and wealth among member states have created a climate of social conflict.
In today’s chaotic political climate, it is not easy to unify Europe. It is no surprise that internal fragmentation also poses a challenge to Europe’s economic recovery. To help tackle these challenges, the EBRD is helping to develop the best and brightest minds across the region and to bring them back home.
