Abstract:

Covid-19 has negatively affected the economies of almost all countries around the world including the impact on their main economic indicators such as GDP, unemployment level, inflation rate etc. The purpose of this article is to investigate the impact of Covid-19 on unemployment level in European Union. In the article, firstly the impact of Covid-19 on general unemployment level in European Union and its impact on unemployment level by sex and age have been revealed based on statistical data by years. Moreover, the impact of the pandemic on people’s unemployment expectations over the next 12 months, labor market transition from unemployment to inactivity and the number of persons available to work but not seeking have been mentioned. Then the factors that can cause the unemployment level to be increased during the pandemic have been determined in order to define the particular reasons of unemployment in European Union. Based on multiple regression analysis, it is justified that unemployment level is positively related with the number of active covid cases and the number of business closures, but negatively related with the households’ major purchases which represent consumer demand.