Implications of the Economic Crisis on European Labor Market

In 2008 the world economy faced its most severe crisis since the Great Depression of the 1930s. The crisis which began in 2007 when very high real estate prices in the United States finally changed towards low and very low prices expanded quickly, first to the entire United States financial sector and then to financial markets overseas, especially in Western Europe. The implications of the crisis were not limited to the financial sector. With the deterioration of living standards in many countries and as result the reduction of consumer spending, the entire structure of international trade was heavily affected. The payments system involving money transactions went in disarray. Following the reduction of employment, the payment of wages was disrupted, which in turn triggered a reduction in expenditures on consumer goods and services. A vicious circle was formed. This process of economic decline has been cumulative in the sense that all categories of the labor force were affected. This work is a presentation and analysis of the labor market in the European Union and the impact of the economic crisis on this market. We considered that this market is very important because it relates to jobs and the wellbeing of the people, especially the young generation. On the other hand, the labor market is the market which is directly perceived and experienced by the people and any improvement on this market has a beneficial effect for the people.