EU Labour Market Slack at 12.3%
Defining Labour Market Slack
Labour market slack refers to the unmet demand for paid labour within a given population. It arises when there is a shortfall between workers' desired amount of work and the actual amount of work available.
EU Labour Market Slack Data
In the fourth quarter of 2020, the labour market slack in the EU accounted for 14.2% of the extended labour force. This means that there was a significant shortfall in employers' demand for labour compared to the available supply.
Measuring Labour Market Slack
Labour market slack can be measured using various indicators, including unemployment rates, underemployment rates, and involuntary part-time work. These indicators provide insights into the extent to which the labour market is able to absorb the available workforce.
Conclusion
Labour market slack is a key indicator of the health of an economy. High levels of labour market slack can lead to economic inefficiencies, reduced productivity, and social inequality. Addressing labour market slack requires comprehensive policies that focus on job creation, skills development, and labour market activation measures.
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