The European Labour Market Barometer fell compared to the previous month significantly by 0.9 points to 99.6 points in August. Both components of the labour market leading indicator of the European Network of Public Employment Services and the IAB recorded declines. “Europe's labour market outlook suffers a severe setback,” says Enzo Weber, IAB head of forecast. The employment component fell by 1.2 points to 100.4 points in August - the lowest level since three and a half years. The unemployment component is also losing ground. With a drop of 0.6 points, it now stands at 98.7 points and is below the neutral value of 100. “The European Employment Services are as pessimistic about unemployment as they have been for two years, but now the positive employment trend also seems to be coming to an end”, explained Weber.
European Labour Market Barometer falls into negative territory
The unemployment component is also losing ground. With a drop of 0.6 points, it now stands at 98.7 points.