Furloughed Jobs Disguise the Eurozone Employment Crisis
The United States jobs recovery slowed down slightly in September, but the employment recovery is still faster than in most comparable economies. The jobs report showed a healthy 661,000 gain in nonfarm payrolls last month. Much of the difference with consensus came from shifts in government payrolls, which fell 216,000 in September. However, private payrolls rose by a healthy 877,000. This means that unemployment may have fallen below the 8.1 percent level in September.
In Europe, according to Eurostat, the unemployment rate increased to 7.4 percent in August, while in the euro area it rose to 8.1 percent. However, more than 10 million workers remain in furloughed jobs, making the comparison with the United States, which does not have that scheme of subsidized unemployment, a challenge.
In similar terms, the eurozone unemployment would be close to 11 percent if we used the same calculation as the United States. The Organisation for Economic Co-operation and Development (OECD) estimates that unemployment will rise abo
Article from Mises Wire