lead to unemployment surges, as firms are forced to cut costs when financing becomes expensive or is no longer available …. As a result, all countries with risk premium shocks saw unemployment surge, even as euro area core countries managed to … contain unemployment as firms hoarded labor during the downturn. Most striking, wage bills in euro area crisis countries and …

While unemployment rates in Europe declined after the global financial crisis until 2018/19, the incidence of long …-term unemployment, the share of people who have been unemployed for more than one year to the total unemployed, remained high. Moreover …, the COVID-19 pandemic could aggravate the long-term unemployment. This paper explores factors associated with long …