Weak economic recovery in the EU is incapable of creating jobs

Unemployment still at record levels, companies continue to misuse part-time contracts. Commissioner Andor: “Intensify efforts to ensure that nobody is left behind.”

Recently there are little signs of economic recovery, even though it has not been able to create new jobs, according to the European Commission Quarterly Review of the Employment and Social Situation. The analysis also pointed out an increase in poverty levels and a slight improvement in the effectiveness of social protection expenditure in 2013 – yet, the impact of the latter remains very, very weak.

“The European Union economy has returned to growth at a slow pace, but the situation of many households and individuals is not yet improving, with ever growing numbers suffering from financial distress,” said László Andor, EU Commissioner of Employment. “Inequalities have risen and there is a risk that the current fragile recovery is not going to improve the situation of many lower-income groups.” Andor has asked Member States to “further step up their efforts to ensure that nobody is left behind, as we try to exit the crisis.”

According to the Quarterly Review, employment showed the first signs of stabilisation in 2013, with a 0.1 percent growth in the second half of the year. Positive growth was recorded in the service sectors, while job destruction in the construction and industry sectors has slowed down.

Yet, January 2014 show that unemployment is still at record high levels, with around 26 million people (that is, 10.8 percent of the economically active population) looking for work. The Review also shows increasing use of temporary and part-time work, which shows that temporary employment has become less of a stepping-stone towards a permanent job since the onset of the crisis.