Employment News Second Quarter 2013 Second Quarter 2013

"The euro crisis has brought a double-dip recession with devastating social effects, particularly for 'peripheral' countries and the young generation. But

our latest analysis confirms the advantages of apprenticeships and traineeships in terms of helping young people to get a quality job. This

underlines the urgency for all Member States to make the Youth Guarantee a reality before the end of 2013.”Guarantee a reality before the end of 2013.”

László Andor , European Commissioner for Employment, Social Affairs and Inclusion

Employment Statistics

OverviewThe 2013 Euro area unemployment rate is 12.1 %, stable compared to May

The EU27 unemployment rate is 10.9 %, down from 11 % in Maydown from 11 % in May

This is a total of 26.424 million EU citizens, with 19.266 million of these in the euro area

In contrast, the unemployment rate was 7.6 % in the USA

Employment StatisticsUnemployment Rates Across EU27: May 2013

The lowest unemployment rates are found in Austria (4.6 %), Germany (5.4 %),

and Luxembourg (5.7 %)

The highest unemployment rates are found in Greece (26.9 %), Spain (26.3 %),

and Portugal (17.4 %)

Employment Statistics

Divergence between Member States

Divergence in employment rates remains extremely high but seems to have stabilised.

There is now a gap of 22.3 percentage points between the Member State There is now a gap of 22.3 percentage points between the Member State with the lowest rate of unemployment (Austria, 4.6 % in June 2013) and that of the highest (Greece, 26.9 % in June 2013).

This represents a small decrease since the last quarter, when the gap between highest and lowest rates of unemployment was 22.5 percentage points. Unemployment rates having fallen in both countries, by 0.1 % in Austria and 0.3 % in Greece, compared to March 2013.

Employment StatisticsEmployment rates in the EU compared to US

Employment StatisticsYouth Unemployment

Nearly a quarter of economically active young people in Europe are unemployed, at 23.2 % (5.512 million) in the EU27 in June 2013 and 23.9 % (3.6 million) in the euro area.

The lowest rates were observed in Germany(7.5 %), Austria (9.3 %), and the Netherlands (11.0 %).

The highest rates were observed in Greece(58.7 %), Spain (56.1 %).

Overall these numbers have decreased slightly from the first quarter, when the youth unemployment rate was 23.5 % in the EU27 and 24.0 % in the euro area.

Employment Statistics

Youth unemployment

rates and year-on-year changes, year changes, April 2013

VacanciesTypes of Vacancies In the Second Quarter of 2013, job vacancies declined overall and there was a noticeable difference in hiring based on educational level. This was reflected in an increased hiring of professionals but also an increase in people being hired for roles they are overqualified for.

VacanciesIn the fourth quarter of 2012, the EU job vacancy rate rose compared to the year-ago level (1.6 % against 1.5 %). This rise is unexpected given the latest year-on-year changes are negative in all large Member States except the United Kingdom.

VacanciesIn the fourth quarter of 2012 and the first of 2013, the labour shortage indicator remained below the 5.5 %-6.5 % range in which it had hovered since the start of 2011. *

Stagnant recruitment is indicated by a 4 % decline in overall hiring and worse job prospects for the unemployed.

The inflow of job vacancies was more or less stable, however there were strong differences between countries.**

In the Southern Member States there was strong competition for jobs among unemployed jobseekers.

Over 50 % of hiring were on a temporary basis, however, overall the number of temporary vacancies declined, as indicated for the 5 Member States illustrated in the graph below.

Vacancies

Geographical mobility of workersAlthough overall the proportion of those wanting to move abroad to work has not changed, remaining around 20 %, those with ‘firm intentions’ to move has more than doubled from 0.5 % to 1.2 %.*

Unsurprisingly the highest intention to move abroad was within the country with the highest level of unemployment (Greece, 4.1% had ‘firm intentions’ to move abroad).**

Official migration statistics show there has Official migration statistics show there has been a major decrease of migration flows to countries hit worst by the crisis since 2008. (Spain, -37 %, Portugal, -34 %, and Italy, -28 %.)

As for emigration flows, there were sharp increases over 2008 – 11 in the number of people leaving countries such as Lithuania (+217 %), Portugal (+116 %), Spain (+90 %) or Ireland (+43 %) – but, interestingly, not for Italy (+2 %).

Geographical mobility of workers

Number of jobseekers registered in EURES CV Online, by country, in thousands The recent changes in the

number of jobseekers registered on the EURES Portal confirm a rise for many countries in the number of people taking practical steps people taking practical steps to be mobile.

In June 2013, around 55 % of all EU jobseekers registered in EURES (566 000 out of a total of 1.04 million) originate in the four southern EU countries: Spain, Italy, Portugal and Greece.

Articles of Interest

News articles from ENIB on the Extranet:

EU announces apprenticeship and traineeship schemes

Commission outlines ambitious set of reforms for EU economy

Results from the latest European Vacancy Monitor & European Job Mobility Bulletin

Despite increased levels of migration, report concludes worsening prospects for immigrants

Report concludes cross-border labourmarket is both a challenge and an opportunity

Sources

European Vacancy Monitor (EVM)http://ec.europa.eu/social/BlobServlet?docId=10217&langId=en

European Job Mobility Bulletin (EJMB)http://ec.europa.eu/social/BlobServlet?docId=10218&langId=en

Monthly Labour Market Statistics (Eurostat)http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/3-31072013-BP/EN/3-31072013-BP-EN.PDF

Employment and Social Situation Quarterly Reviewhttp://ec.europa.eu/social/BlobServlet?docId=10312&langId=en