Low unemployment while productivity increases in parts Europe.
Since 2008, parts of Europe has been characterized by high unemployment. This has led to unprecedented low-interest rates and stalling of productivity.However, the situation is changing. Since the year 2014, unemployment has been declining, and employment has been on the rise.The tourism, hospitality, information, and communications are among some of the growth areas.Countries such as Switzerland, the Czech Republic, and Germany indicate that there is productivity on the rise again. Large regions, especially in these countries, show medium or low unemployment.For the first time in decades, the greater parts of western Europe is experiencing low unemployment rates.These rates go as low as 3.5%. The areas with low unemployment are bordered by regions with medium unemployment rates 3.5%-5%. Labour in most parts of Europe is becoming scarce. This situation is brought about by the fact that unemployment in countries with a vast labor force such as Poland is also experiencing declining unemployment.One of the reasons for the difference in unemployment in Germany and France is due to the appalling fertility rate of Germany.
In Germany as well as the Czech Republic inflation is relatively low and stable.According to the most recent data, it was found out that wages begin to increase while the profits seem to be declining a bit.This causes the reversing of the decline in labor share.However, in the low unemployment countries, labor productivity appears to be increasing again. In countries like the Netherlands and Germany have ‘beggar thy laborers’ micro-economic policy.This is accompanied by pro-cyclical macroeconomic policies. These are high flexibility wage restraint policies that have existed for years. Indeed the world is changing, and labor is regaining its dignity again. The fact that labor is about actual people with real families and actual bills is becoming undeniable.