Eurozone’s jobless crisis must be tackled
It results in a loss of economic potential; puts increased pressure on government expenditure as calls on unemployment benefit and other allowances given to those out of work rise; it damages self-esteem for those who become unemployed; it results in forced emigration and a consequent loss of skills; and gives rise to serious social problems. The latest data released by the EU statistical agency, Eurostat, shows the extent of the jobless crisis currently besetting the EU economy. The unemployment rate in the eurozone averaged 11.2% of the labour force in June 2012, which is a record high for the Euro area. This is equivalent to 17.8m people out of work, with 3.4m of those under 25. Spain’s unemployment rate stood at 24.8% in June, with the unemployment rate for the under 25s a frightening 52.7%. The Portuguese overall rate of unemployment stood at 15.4%, and the Greek rate in April stood at 22.5%. Ireland’s rate stood at 14.8% in July, with the rate for the under 25s at 29.2%.
These statistics are frighteningly high and one would have to have serious concerns about the social and political implications of the jobless situation. Wars and revolution are generally caused by unemployment as those who are forced to the fringes of society justifiably feel they have a lot less to lose than those who are in employment.
