Due to the fact that the labour markets in most industrial and developing countries already suffered from significant deficits before the crisis (e.g. high youth and long-term unemployment, underemployment and informal employment with a high share of precarious employment), political decision-makers are facing a necessary but difficult decision: In the light of limited fiscal space or even necessary budget consolidations, they have to decide on how to integrate their employment- and labour policy-related measures that were decided on at the beginning of the crisis, into their general employment and labour market policies.
This process will eventually put the entire policy package to the test. Which of the emergency measures were and still are actually effective? Which of the actions taken to directly combat lay-offs and income losses should be maintained until a full recovery of the economy, and which should not? What does this mean for the existing labour market and employment policy? These are the questions we want to answer in this study.
Read the paper here: http://star-www.giz.de/fetch/3lQ00q3XM0001OgHae/giz2014-0169en-employment-economic-crisis.pdf