By the EESC Workers' Group

The ongoing coronavirus pandemic has transformed a looming crisis into a full-scale economic depression, seeing the largest GDP drops in peacetime for a century, and has sent millions to different – unemployment or part-time – schemes. Despite their role in cushioning the bulk of the impact, our social systems are in general as ill-prepared as our health systems were for the pandemic, as they have been severely undermined by years of austerity since the 2008 crisis.

Moreover, the measures in place to protect workers and their jobs are uneven, with the most precarious workers often left outside the traditional protection schemes – such as those with delivery and other "new forms of work" contracts.

The system of unemployment benefits is not only fragmented within countries, but also between them: there are massive differences in duration and coverage of benefits, as well as replacement – share of the former salary received.

The study commissioned by the Workers' Group analyses how the economy as a whole in the EU, and in individual countries, would react if the unemployment systems had a common floor of coverage, duration and replacement, ensuring workers in Europe a common minimum standard. Using macroeconomic modelling, the study tests this hypothesis against the 2008 crisis, a whole budgetary cycle and, more relevant today, against the pandemic economic downturn.

Results show clearly that the impact on the economy would be positive, much more so if used together with other social policies, ensuring the protection of jobs and avoiding another economic recession. You may find the full study and details in the following link. (prp)