Long-term Unemployment in the EU: Trends and Policies

Long-term joblessness is associated with high costs to the individuals affected and to society at large. At the individual level, it is often linked to psychological and other health problems that have a significant negative effect on quality of life, and generate additional long-term costs for the healthcare system and welfare services. Long-term unemployment is a prime cause of poverty and social exclusion, thus affecting households as well as individuals. It leads to declines in individual human capital, which in turns clouds individuals’ future employment prospects and decreases income levels.

The primary objective of this study is to gain a better understanding of the shape and causes of long-term unemployment from a comparative perspective. How is long-term unemployment measured? Who are the long term unemployed? How long are individuals’ periods of unemployment? Why do unemployed persons give up searching for a job? What factors contribute to long-term unemployment? Finally, it asks what can be done to reduce and prevent long-term unemployment.