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  • Essay / European Crisis Essay - 1034

    It all started in the summer of 2007, when a crisis hit the United States and, due to huge government interventions, the United States and most European countries entered a recession. The EU crisis was also caused by large debts incurred mainly in Spain and Italy, before 2008. The private sectors (businesses and mortgage borrowers) taking out loans were the main reason for this crisis. There was a drop in interest rates in southern European countries when they joined the Euro, which caused the countries to go into huge debt. This has had negative effects on financial markets, a slowdown in economic growth in industrialized countries and an impact on European labor markets. After World War II, unemployment rates in Europe were already low, and with the crisis, the unemployment rate percentage only increased in the following years. All this was due to different problems and events they faced, such as: the two oil shocks, the decline in production growth, the disinflationary policy of many central banks, etc. This recession led to very high unemployment, and the increase in unemployment during this period was achieved through some internal measures (such as flexible working time arrangements, temporary closures, etc.), but unemployment was not distributed equally among different groups of people. (the biggest differences were due to gender, education, age, etc.) but ultimately these measures only delayed the process of significant unemployment from work, they did not have not helped the situation return to what it was before the crisis. The labor force of a population includes those who are employed and those who are unemployed. Middle of paper ...... is facing many problems, the European labor market has also been affected by this crisis and many other problems have been encountered during this difficult period. The EU's plans for the future are to minimize job losses, prevent unemployment, improve job creation and restart the economy in a comprehensive and stable manner. To achieve this, to improve and develop the flexibility of the labor market and to increase the supply of labor, they reduced income taxes and improved access to atypical forms of work. labor market, reoriented active labor market policies and similar activities like these have been carried out. But even though the EU crisis influenced the European labor market and created many problems and struggles against unemployment, in recent years they managed to increase the unemployment rate by 2%.