High unemployment countries in the EU
Question
Which European Union countries have the highest unemployment rates, and what explains this?
Short answer
Typically southern European economies such as Spain and Greece, often with Italy and France above average. Reasons include rigid labour markets with strong insider protection, large temporary-contract sectors, structural shifts after the euro-area debt crisis, the inability to devalue inside the euro, and very high youth unemployment. Check the latest Eurostat figures, since rankings move over time.
Adapted from Joshi, Denson & Downes, Quant Job Interview Questions and Answers, Q9.31, p.304; question and answer rewritten by SelfMadeQuant.com.
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