Commentary The unemployment rate in the euro area fell to 7 percent in December and 6.4 percent (pdf) in the European Union, compared with the United States at 3.9 percent. We mustn’t forget that these unemployment rates don’t include furloughed jobs covered by unemployment retention schemes, which account for another 5 million workers waiting to return to normal activity. After a fiscal stimulus plan of more than 5 percent of GDP in 2020 and another 4 percent in 2021 and the European Central Bank purchasing 100 percent of net issuances from most sovereigns, the recovery shows a concerning weakness. Furlough jobs are rising again, working hours are still below the pre-pandemic level, and real wages are falling as inflation eats into the recovery. In December 2021, the youth unemployment rate was 14.9 percent in both the EU and the euro area. These unemployment levels are high, but some member states …
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