Economics
A Jobless Recovery Is Becoming a Real Risk for Europe’s Economy
- Even as growth revives, company hiring may still lag
- ‘Job losses are still ahead of us,’ says ABN Amro’s Kounis
A pedestrian passes a Pole Emploi job center in Paris.
Photographer: Cyril Marcilhacy/BloombergThis article is for subscribers only.
With job cuts mounting and costly furlough programs that can’t last forever, Europe is at risk of a devastating increase in unemployment that won’t be easy to reverse.
Economies across the continent are recovering and company sentiment is brightening, but it’s a different story when it comes to hiring. After months of crisis, the outlook remains too uncertain for firms to commit to spending. Many may not even reinstate all furloughed workers when governments end subsidies that kept millions on payrolls.