New eBook | Long-term unemployment after the Great Recession: Causes and remedies
Monday, November 14, 2016
Unemployment has started to decline in most developed countries, but the number of people who have been out of work for more than one year remains significantly high. Long-term unemployment (LTU) causes considerable mental and material stress on those affected. Many of these people then find themselves at the margins of the labour market. The political implications of the resulting widespread poverty cannot be ignored either.
This eBook includes contributions from some of the world’s leading specialists, comparing experiences from several countries. It confirms that LTU is primarily the result of rigid labour market institutions. It also shows that a major cause of increase in LTU is the persistent contraction of aggregate demand, and the double-dip recession. Most European countries have been too slow to tackle this dangerous phenomenon, but others have provided encouragement by succeeding.
The eBook identifies some measures that have been found to be effective:
- Active labour market policies as opposed to employment protection legislation
- Subsidised private sector employment, but not public sector
- Well-designed training programmes