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COVID-19 pandemic and unemployment dynamics in European economies

Author

Listed:
  • Chi-Wei Su
  • Ke Dai
  • Sana Ullah
  • Zubaria Andlib

Abstract

This study goal to scrutinize the influences of the COVID-19 pandemic on unemployment in five selected European economies. To this end, the study uses a Fourier causality test for the period of December-2019 to December-2020. In Z-test results, Germany, Spain, and the UK have a significant positive change in unemployment due to COVID-19. The finding shows that COVID-19 cases cause unemployment for Germany, Italy, and the UK. Moreover, in terms of deaths, COVID-19 also causes unemployment in Italy and UK. Overall, the study's outcomes highlight that the pandemic increases the unemployment rate robustly in the mostly European economies. That is one of the rare negative effects of the virus on the European labor market. Novel COVID-19 findings provide a reliable guide to the future policy implication for the labor market. An active labor market policy will be needed to be in front of the world urgently.

Suggested Citation

  • Chi-Wei Su & Ke Dai & Sana Ullah & Zubaria Andlib, 2022. "COVID-19 pandemic and unemployment dynamics in European economies," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 1752-1764, December.
    • Handle: RePEc:taf:reroxx:v:35:y:2022:i:1:p:1752-1764
    DOI: 10.1080/1331677X.2021.1912627
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    Citations

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    Cited by:

    1. Onyango, Gedion, 2023. "The post-COVID-19 economic recovery, government performance and lived poverty conditions in Kenya," LSE Research Online Documents on Economics 119511, London School of Economics and Political Science, LSE Library.
    2. Rinzin Choden & Piriya Pholphirul, 2024. "Employment Adjustment During the Initial Outbreak of COVID-19: Empirical Evidence from Tourism Workers in Bhutan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 25(1), pages 74-95, March.
    3. Wan, Guochao & Zhang, Weike & Li, Chao, 2024. "How does low-carbon city pilot policy catalyze companies toward ESG practices? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1593-1607.
    4. Juan Carlos Cuestas & Luis Gil-Alana, 2024. "Unemployment Hysteresis by Sex and Education Attainment in the EU," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 801-827, March.
    5. Lukas Cibik & Leon Richvalsky, 2023. "The Economy of EU Member Countries in 2020 from Perspective of Magic Square," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 8, pages 3-21.
    6. C. Vladimir Rodríguez-Caballero & J. Eduardo Vera-Valdés, 2020. "Long-Lasting Economic Effects of Pandemics:Evidence on Growth and Unemployment," Econometrics, MDPI, vol. 8(3), pages 1-16, September.
    7. Junfeng Jiang, 2023. "Heterogeneous Influence of Socioeconomic Inequality on Population Health: A Cross-national Study," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(3), pages 1109-1124, October.
    8. Gedion Onyango, 2024. "The Post-COVID-19 Economic Recovery, Government Performance and Lived Poverty Conditions in Kenya," Public Organization Review, Springer, vol. 24(1), pages 369-387, March.

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