Active population in the eurozone has been falling for the last three quarters. As JPMorgan analysts commented on Wednesday, one of the reasons might be that people looking for a job are increasingly losing motivation to go out and apply for a post.
However, the last Labor Force Survey show that the labor market participation rate has been close to historic maximums in 1Q14.
What’s happening then?
The answer is simple: youngsters and active population, meaning people 15-64 years old, is decreasing. While the EZ total population has increased by 0.1%, population in that age braket has gone down by -0.4%, which means 900,000 people less.
In 2013 in the EU28, the unemployment rate for non-EU citizens1 (21.3%) aged 20 to 642 was more than twice the level for citizens of the reporting country (10.0%), referred to as “nationals”, Eurostat reported. However, the share of people unemployed for 12 months or more was at almost the same level for non-EU citizens (48.6%) and for nationals (49.4%).
The jobless rate for non-EU citizens aged 20 to 64 in the EU28 stood at 56.1%, while it was 68.9% for nationals.