The EU unemployment under the recent developments of the global economic globalization

Abstract

The literature recognizes that the gradual countries’ involvement in the economic globalization has generated competitive environments that stimulate innovation and economic growth. Yet, globalization has also apparently led to the increase of inequality, contributing for waves of populism and discontent, claiming for justice in sharing these benefits. Thus, it is not surprising that the interaction globalization/social justice is paying attention to politicians and academics, seeking to identify if there is reason to fear that the globalization leads to increase inequality. The paper deals with the link between globalization and social justice, measured by updated indicators that improved the data quality and broadened their baseline. In what globalization concerns are applied the renewed KOF index, including de facto and de jure perspectives. Concerning social justice, are used the latest “EU Social Justice Index”. Structural unemployment trends, such as the long duration distressing people’s skills and motivation, as well as youth unemployment, which has stimulated immigration and led to the departure of skilled young people, have greatly reduced their potential for growth. GDP declined, corporate failures increased, as did unemployment and poverty. Governments have greatly limited their spending, particularly at the social level, in order to meet the targets, set in the adjustment programs. In addition, countries no longer have financial conditions to implement measures to stimulate the economy, in order to promote a faster recovery. It has recently been surprising that the escalation of globalization has put people in a precarious employment position, who felt they were protected from the competition of low wages. This paper, also, reflects on the effects of the recent global financial crises in the EU members, which especially hit the Euro zone.