While there are reasons for “cautious optimism” as the euro zone shows signs of economic recovery, high unemployment in the region will fall by just one percent in the next four years and in some areas it will spike before dipping, a new study finds.
Stubbornly high unemployment rates not only pose a real threat to the recovery, as consumer demand will remain subdued, but young people are also at risk of spending less time in employment, creating potentially “dire” consequences for businesses.
Unemployment in the euro zone is currently sitting close to a record high of 12 percent, and is forecast to fall at a very slow rate over the next two years before reaching 11 percent by 2018, according to the spring EY Eurozone Forecast (EEF).
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