The Labour Market and Wage Developments in Europe report analyses the labour market from a macroeconomic perspective. It provides an analysis of recent employment and wage developments, looking at the euro area and the EU as a whole in comparison with its global trading partners.

In 2020, the EU experienced the deepest recession since World War II. The impact on unemployment has been relatively mild thanks to the strong policy response at EU and national level.

Yet, big challenges remain. Employment is lower than before the pandemic. As workers in a weak position before the pandemic are more exposed to risks, the labour market is increasingly polarised, with many young people, low-skilled people and women having left the labour force. More people expect to be unemployed than before the pandemic. And despite the rebound of GDP in the third quarter of 2020, job vacancies remain at the lowest level since more than two decades.

Employment policies need to support labour reallocation toward expanding sectors, including in the digital and green sectors.

Check out the key conclusions.

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