Moody’s sees Spain as one of the countries most likely to have youth unemployment due to covid.
The risk rating agency warns that the impact of the coronavirus on the EU labor market could delay the economic recovery of southern European countries.
The risk rating agency Moody’s warns that the impact of the coronavirus on the European Union labor market could delay the economic recovery of southern European countries.
Specifically, it considers that Spain, Italy and Portugal are some of the states most exposed to the growth of unemployment , especially among workers with less training and young people . Likewise, it ensures that the impact of the pandemic on the labor market has been especially “severe” in the case of women .
The agency warns that a weak and prolonged recovery could imply a long-term loss of production. For this reason, it proposes to adopt “relevant” training and job placement policies.
Moody’s warns that a slowdown in the recovery could lead to an increase in the number of low-income families, which could end up reversing in a weakening of the labor productivity of the entire economy. “For some groups, the labor market crisis caused by COVID-19 has been much worse than the global financial crisis of 2007-2008,” says Moody’s analyst and co-author of the report, Ruosha Li.
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“The impact on young people, women and less-qualified workers, has been especially harsh. This fact is explained in large part by the disruption in sectors such as hospitality or tourism, in which a large number of workers from these groups work. demographics, “he added.
Italy, Spain and Cyprus have recorded the steepest drops in female employment in 2020. Obligations when it comes to caring for others or difficulties in looking for work during a pandemic are some of the reasons.
When governments begin to withdraw aid, Moody’s expects unemployment rates for both men and women to rise . However, it ensures that the participation rates of women could deteriorate even more due to their high presence in the most affected sectors.