On the face of it, Austria’s labour market performs very well, which is reflected in one of the lowest unemployment rates in the EU. However, while many of the euro area members have recently succeeded in reducing unemployment, the Austrian jobless rate has been on a clearly rising path since...

The Brief investigates the role of policy uncertainty in explaining the persistently high unemployment rate in the euro area after the Great Recession and the different impact of uncertainty on flows into and out of unemployment.