What Happens When the Euro Area’s Furloughed Workers Become Jobless

(Bloomberg) -- Bloomberg Economics estimates that 7 million full-time equivalent jobs are furloughed in the euro area’s four largest economies: If those workers roll off retention schemes into unemployment, joblessness could leap by almost 6 percentage points on average. BE estimates higher unemployment could prompt consumption to drop by as much as 4% in the four biggest euro-area economies, dragging GDP down by 1.3% through this channel.

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