Slack in Europe’s Labor Market Rose During Virus Lockdowns

(Bloomberg) -- The economic shock of the pandemic has left millions of Europeans without a job, and millions more underemployed. Total slack in the labor market, which comprises all people with an unmet need for employment, jumped to nearly 30 million in the second quarter, or 14% of the EU’s extended workforce, with southern Europe hit particularly hard. While the increase from the previous quarter was the biggest since the beginning of the series in 2008, the overall rate remained low by historic standards -- slack reached 19% in 2013 during the region’s sovereign-debt crisis.

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