European Labor Markets and the COVID-19 Pandemic: Fallout and the Path Ahead

Author/Editor:

Sakai Ando ; Ravi Balakrishnan ; Bertrand Gruss ; Jean-Jacques Hallaert ; La-Bhus Fah Jirasavetakul ; Koralai Kirabaeva ; Nir Klein ; Ana Lariau ; Lucy Qian Liu ; Davide Malacrino ; Haonan Qu ; Alexandra Solovyeva

Publication Date:

March 3, 2022

Electronic Access:

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Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

In 2020, the COVID-19 pandemic caused by far the largest shock to European economies since World War II. Yet, astonishingly, the EU unemployment rate had already declined to its pre-crisis level by 2021Q3, and in some countries the labor force participation rate is at a record high. This paper documents that the widespread use of job retention schemes has played an essential role in mitigating the pandemic’s impact on labor markets and thereby facilitating the restart of European economies after the initial lockdowns.

Series:

Departmental Paper No 2022/004

Subject:

Frequency:

occasional

English

Publication Date:

March 3, 2022

ISBN/ISSN:

9798400200960/2616-5333

Stock No:

ELMCPFPAEA

Pages:

96

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