European Shadow Unemployment Is a Real Problem
The latest jobs report in the United States shows strengths and weaknesses. Total nonfarm payroll employment increased by 223,000 in December, and the unemployment rate fell to 3.5 percent. However, the United States job market continues to show negative real wage growth, the employment-to-population ratio is 60.1 percent, and the force participation rate is 62.3 percent. According to the Bureau of Labor Statistics (BLS), both measures have shown little net change since early 2022 and each remain 1.0 percentage point below their values in February 2020.
The United States jobs figures are constantly dissected by analysts and there is a healthy criticism in independent research which certainly helps enormously when it comes to understanding the health of the labor market. However, in the European Union things are much worse.
The latest unemployment figures are very concerning, but what is even more worrying is to analyze the “shadow unemployment.” In its latest Economic Outlook or Europe 2023–24 report, UBS shows the significant difference between official unemployment in the euro area and the hidden unemployment coming fro
Article from Mises Wire
