Covid struck. But policy makers need to have the means to help the newly unemployed, given the expected scale of joblessness.
They’ll also need to ensure that any decision to taper the furlough schemes is easily reversible if a future pandemic wave shuts the economy again.Europe’s labor markets are in a very precarious state.
Take the U.K.: The country’s headline unemployment rate stayed at 3.9% in the second quarter of this year, as companies kept workers on their payrolls because of the government’s generous furlough scheme, and people without a job couldn’t actively search for a new one (meaning they weren’t classed as being unemployed).
Read more on livemint.com