Jobs Revival in Europe
Compared to the 2007 pre- crises level of employment in Europe, we now see a better figure of employment. However the job benefits are scattered. Spain leads the lot in gains closely followed by Germany.
The economic boom in Germany has been pretty moderate for the past decade however it has also been steady and consistent. In Berlin on Thursday according the consultancy Ernest Young (now known as EY)in Germany it was reported that around 4 million jobs additionally have been generated in year 2007. Ernest & Young told this year (2017), approximately 520,000 jobs were added.
For 2018 the projection looks good with 400,000 more jobs estimated to be added. Ernest Young also expects 2% growth in Gross Domestic Product (GDP).
Ernest and Young estimated a growth of 1.8 million employment opportunities for the EuroZone of 19 countries alone; i.e. 1.4 million outside Germany. In 2018 reforms will be negotiated, Young dynamic Emanuel Macron, France president has proposed that they will improve EURO currency area of prospects.
Unemployment rate of Spain decreased by 19.6% to 17.2% in the year 2017. By the last quarter of 2018 Ernest Young predicts that, Spain will generate 400,0000 jobs beating Germany in growth of employment opportunities on basis of per capita. Although Spain initially had huge unemployment of 17.2% and In Germany it was 3.8%, According to the calculations of International Labor Organizations the unemployment rate in the Eurozone Spain is second highest after Greece.
Decrease in employments
For the calculation of employment or unemployment there are many different methods, For example whether people, who work on part time and supported government training programs job are employable or not. According to the German government, the rate of unemployment for 2017 resulted 5.7% which is more than ILO’s figure which was 3.8%, Anyway it is the lowest in the whole Eurozone.
As per figure of ILO for 2017, In Germany the rate of unemployment was decreased at 4.7 % when compared to the year 2007. Compared to previous financial crisis year in Eurozone only Malta and Slovakia has decreased their unemployment rate.
In 2017 in Greece 13.2% rate of unemployment is huge when compared to year 2007, France by 1.3%, 5.1% in Italy and Spain by 9.0 %
As per ILO figures and Ernest young’s, in year 2017 in the whole Eurozone the rate of unemployed was decreased by 10.0 % from 9.2%. Ernest young projected 8.6% decrease in unemployment rate in Eurozone.
Ernest Young senior partner, Bernhard Lorentz for public affairs and government said that “The trend reversal has been successfully achieved.” In the whole Eurozone for the first time the employed worker number was increased in 2007.
In Eurozone the rate of unemployed registered workers continues to grow when compared to figures of 2007. Over the past 10 years the available workforce for labor increased and the sequence of immigration as well as women workforce delivered this apparent paradox.
Shortage of skills in Germany
Firms of German, the decade old phase of growth in German economic is becoming problematic in terms of filling new or vacant job opportunities, Lorentz said “The labor market for skilled and academics and workers, for example, has been swept clean in many places. This could become a real problem for Germany as a location, and a brake on innovation and growth.”
Shortage of skills makes International companies look towards other countries to meet their requirements. Regarding this Lorentz said, “We therefore need a forward-looking migration policy. Immigration can make an important contribution to ensuring an adequate supply of skilled workers.”