Evaluating impact on loss of jobs

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Does the option lead directly to a loss of jobs?[1]


Unemployment rate is the proportion of labour force that is actively seeking employment, but is unemployed. In practice, the official unemployment rate is the percentage of unemployed labour force. Part of unemployment can be considered "frictional", i.e. it reflects the mobility of workers from one occupation to another, thus ensuring some flexibility to the economic system in response to business cycles. However , the largest share of unemployment in Europe can be considered "structural" in that it is a long term feature of the economy and it is likely to be linked to a variety of technological, institutional and social factors. Combating unemployment is a primary economic goal, as it implies reducing the amount of production and income that could be generated in the economic system and is not; furthermore, it lowers the risk that skilled human capital deteriorates and is dispersed over time as a result of no use or misuse; finally with low unemployment levels the availability of workers themselves to move from one occupation to another increases, and the overall productivity may benefit from this. Examples of policies aimed at combating unemployment are structural measures reducing the costs of manufacturing equipment and favouring the set up of new plants in given areas or industries, particularly those characterised by low growth and restructuring problems. Support to final demand for new products and technology can favour product innovation whose impact is to reduce unemployment more than new process technology adoption (in fact innovation in machinery and equipment, while increasing productivity and competitiveness at the firm or industry level, can have overall labour shedding effects). At the same time, some policy measures could create adverse effects on specific sectors and labour markets with the risk of job losses.[1]



The following Eurostat Structural Indicators (Economic reform) are relevant to address the key question:

The following Sustainable Development Indicators(Economic Development)are relevant to address the key question:

See also


  1. 1.0 1.1 1.2 1.3 JRC: IA TOOLS. Supporting inpact assessment in the European Commission. [1]

The text is for information only and is not designed to interpret or replace any reference documents. The text is partially adapted from: