Typically outside of this blog’s scope, I think it is important to pay some attention to employment data in the EU, since this will be instrumental in selecting EU policy measures and reforming Community labor legislation.
The monthly EU employment situation and social outlook provides data for February. It appears that EU labour markets are starting to react more strongly to the current economic downturn. Job vacancies have started to fall in reaction to the downturn. Unemployment rates are rising across the EU. The most concerned sectors are metals and machinery, motor industry, financial services and transport and storage. Young and temporary workers are the hardest hit.
According to the report the labour market situation is expected to deteriorate markedly as employment usually reacts with a lag (of about 2-3 quarters) to economic activity and companies are increasingly reacting to reduced demand and tighter financing conditions, cutting on their labour force and recruitment plans.