The unemployment rate is an important and well-publicised measure of labour market performance in developed market economies. It is currently high in the EU compared with other developed countries and still well above its historical average nearly a decade after the beginning of the global financial crisis.
But focusing exclusively on the unemployment rate fails to take account of other numerically important manifestations of labour market slack – or simply labour slack.
Labour market slack is the shortfall between the volume of work desired by workers and the actual volume of work available.
The aim of this report is to develop a more nuanced estimate of labour slack using EU Labour Force Survey data, which allows involuntary part-timers and inactive people with some labour market attachment to be identified and quantified.
Download the report Estimating labour market slack in the European Union here.