UNEMPLOYMENT AND LABOR FORCE
CHANGES IN LABOR FORCE
Changes in labor force characteristics such as legal barriers to renegotiate contracts and lay off workers, made firms favored avoiding to recruited (particularly younger) or renovating short-term contracts (often affecting young people). It’s consequences on labor force were:
Growth of employment rate of people between 55-74 years due to the fiscal policies like increase of the age to have the right for publicly provided pension.
Decrease in the employment rate of younger adults (aged 16-29).
The unemployment rate deeply decreased in the years before the crisis (being below 7.5%). Since 2008, it sharply increased up to 2009 (over ± 8.5/9) when it seemed to maintain constant. However, it stepped up again until reaching 2015, when it begun to decrease.
The long term unemployment rate decreased a little bit between 2008-2009. Since then it hasn't stop increasing.
Some years before the crisis the youth unemployment rate it seemed to decrease. Although since 2008 it suffered a potential increase which begun to maintain constant since ±2009.
Figure 1. Unemployment rate OECD (Total, % of labor force)
Figure 2.LONG TERM UNEMPLOYMENT RATE (Total, % of unemployed).
Long-term unemployment: people have been unemployed for 12 months or more. It shows the proportion of long-term unemployed among all unemployed. Measured as a percentage of unemployed. (OECD definition)
Figure 3.YOUTH RATE UNEMPLOYMENT (Total, % of youth labor force).
The youth unemployment rate is the number of unemployed 15-24 years-old expressed as a percentage of the youth labor force. Unemployed people are those who resport that they are without work, that they are available dor work and that they have taken active steps to find work in the last four weeks. (OECD definition)
