Euro area faces rising structural unemployment due to recent NAWRU increase.
The study looked at how to estimate the part of unemployment that is not affected by economic ups and downs. They used different ways to predict future wage and unemployment trends. The results suggest that the non-cyclical unemployment rate has gone up in the euro area, indicating a worsening job market. In Spain, the estimates varied more, but all showed a big increase in non-cyclical unemployment after the financial crisis. The researchers found that both temporary events and long-term structural changes can impact job market performance. Germany's steady decrease in non-cyclical unemployment was linked to reforms that changed the labor market.