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In this essay we will explain the term unemployment and unemployment rate. We will then take a look at the European Union’s unemployment targets in a stable economy, before the start of recession, until 2007, and in a scenario of global crisis, from 2008 on. We have chosen to examine four countries to establish why different economies in the European Union have different unemployment rates, all made worse by the financial crisis. These countries are Spain, Germany, Portugal and France. By looking at the behaviour of their unemployment rates and difference in their economic activities before the recession, we will try to understand why there is such a difference in the unemployment levels among them. Introduction
Unemployment is an economic condition that occurs when a person, within the legal working age, is actively looking for work but is unable to find any. Unemployment rate is calculated as a percentage, which consists of the number of unemployed people divided by the total work force (labour force) of the country, whereas the employment rate is the number of employed people divided by the total work force. They are both seen as important social indicators. Due to labour market reforms amongst EU member countries, alongside a booming economy in 2006, the average employment growth significantly increased in comparison to previous years. At 1.4%, the highest increase since 2000, increasing employment was evident in all the 27 countries of the EU. In the second quarter of 2007 the employment rate was 65.3%, the targets for women employment rate was 60% and for the older people was 50%. In the second quarter of 2007, older people and women employment rates were 44.8% and 58.2%. The average youth unemployment rate was...