Europe recession looks enduring, warns think tank
Europe recession looks enduring, warns the IPPR report. It said the severe unemployment and underemployment in Europe are signals of an alarming situation about the deepening recession.
The left-learning think tank said the worst effects of the European recession risk could be permanent. The report further highlighted that the major problem of Europe is low productivity.
Highlighting the need for enhancing skill set, IPPR report welcomed imposition of apprentice levy.
Europe is suffering from unemployment problem as it's hovering at 10 percent, while underemployment is estimated to be five percent across Europe.
The official unemployment across 28 nations in the European Union (EU) was at 9.3 percent in September lower than 9.4 percent in August.
BBC reports that the euro-pegged 19 nations recorded marginal fall in unemployment rate from 10.9 percent in August to 10.8 percent in September. The globalization and technology advancement have been leaving gaps in skill set of workers and this is adding to unemployment.
Germany is leading among European nations in terms of productivity and enhancing skill set of workers.
The recovery of 19 euro-denominated nations is taking place, but it's been slackening. The growth rate was 0.5 percent in the first quarter, 0.4 percent in second quarter and 0.3 percent during the third quarter of 2015.
Despite dual advantage for Euro, the GDP growth in European nations is still disappointing, according to The Economist. The oil price drop is expected to boost consumer spending, which will propel economic recovery.
Secondly, European Central Bank is facilitating quantitative easing, which means creating more money to buy financial assets. This kept Euro at lower level and helping exporters. Euro is likely to remain steady for some more time.
Germany is the largest economy in the Europe and invests 50 percent more than other European nations in research and development (R&D). The in-work training activity in the UK fell four percent since 2008.
This is considered to be the steepest fall for any other nation in the European Union. IPPR report suggested for imposing apprentice levy and highlighted the need of three million apprenticeships in the near future.
Economists consider that major factor that's affecting European economy is lack of competitiveness.
Europe is suffering low productivity. European Union is facing severe consequences for global competitiveness.
In an article by the Harvard Business Review, researchers warned of another crisis, suggesting that Europe is in the midst of a digital recession while digital evolution is taking place at rapid pace in the rest of the world.
According to a study on Digital Evolution, only three European nations Switzerland, Ireland and Estonia figure in 'Stand Out' category.
Catherine Colebrook, IPPR chief economist hit on adult participation in education and training in the UK, which has fallen since 2008 by more than in any other country, at a time when participation has increased across most of Europe.
"Investment in the country's skills should be a priority for the Chancellor", she added.
She further suggested that the policy makers in the UK should ensure the continuous investment in developing the skills it needs to compete globally.