European governments are coming under pressure to prop up the job market, as they have the financial sector, to prevent a dramatic rise in unemployment.
According to the latest data from Eurostat, unemployment in the 15-country eurozone stood at 7.5 percent in August, up from 7.4 in July, while the overall figure for the 27 European Union member states was 6.9 percent, unchanged from July.
Economists expect the fallout from the financial crisis to lead to higher unemployment across the continent.
The following are some of the announcements governments have made in response to pressures on the European labour markets.
GERMANY – UNEMPLOYMENT RATE: 7.6 PCT
* Government looking at measures to stimulate investment in specific sectors such as auto and construction industries, but so far no concrete steps announced.
* Chancellor Angela Merkel says government must lift economic growth rates through incentives, but opposes sweeping stimulus package.
* Frank-Walter Steinmeier, highest-ranking minister and Merkel's challenger in 2009 election, calls for "protective shield" for jobs but rejects use of income tax cuts.
BRITAIN – UNEMPLOYMENT RATE: 5.7 PCT
* Government says intends to continue spending through crisis to avoid investment lag, but no measures directly targeted at job market unveiled.
* Government encourages banks to lend to small businesses to keep employment underpinned.
* Immigration Minister Phil Woolas says rising unemployment means immigration policies need to be tightened.
* Government tables new immigration legislation, yet to be debated, that would usher in Australian-style points system to limit influx of new migrants. System would allow in highly skilled workers but restrict access for unskilled labour.
FRANCE – UNEMPLOYMENT RATE: 7.2 PCT
* Government orders banks to redirect 22 billion euros ($28 billion), mostly from state-regulated savings accounts, towards loans to small and medium companies.
* President Nicolas Sarkozy suspends corporate tax on new investments by companies until January 2010.
* Sarkozy says will set up sovereign wealth fund by end of year to boost investments in French industry.
SPAIN – UNEMPLOYMENT RATE: 11.3 PCT (HIGHEST IN EUROZONE)
* Government launches fiscal stimulus programme of spending and credits to small business totalling 38 billion euros until 2012.
* Government radically changes immigration policy to reduce pressure on labour market. Plans to slash number of work permits, restrict family reunion visas, pay unemployed foreigners to go home.
IRELAND – UNEMPLOYMENT RATE: 6.3 PCT
* Government says open economy is subject to turbulence in world markets and urges country to keep its competitive edge.
* Government announces review of public sector staffing levels in effort to rein in public spending — compounding worries about job market.
BELGIUM – UNEMPLOYMENT RATE: 6.6 PCT
* Government presents banking bailouts, especially of largest private sector employer Fortis, in terms of protecting Belgian jobs.
* 2009 budget includes measures to help jobseekers find positions more quickly, make workers more flexible and cut employer costs for low-paid staff.
