Brussels, 24/02/2012 (Agence Europe) - Why does the economic and financial crisis in Europe particularly affect young people and low skilled and non-skilled workers? A study by the International Labour Organisation (ILO) in December 2011, “Work inequalities in the crisis: Evidence from Europe” attempts to provide an answer by examining the micro-economic consequences of the crisis. Even though this crisis is not felt in the same way throughout the EU and its impact on national labour markets has varied considerably, there has been an overall rise in unemployment, which now stands at almost 10% on average throughout EU member states and rises to 22% among young people. One of the reasons is to be found in the specific status of workers on temporary contracts. 90% of job losses registered in France, Spain and Sweden have been among employees on temporary or short-term contracts, according to the studies carried out by the ILO. This category of work is mainly made up of young people, who are often poorly skilled and work in the industrial and construction sectors. These sectors are also the most affected by weak growth and the recession. Despite the slowdown in economic activity, jobs have been protected in sectors with effective social dialogue and a low-level of outsourcing. The German labour market, which has not suffered mass layoffs, is the best illustration of this because there has been sufficient flexibility in the labour market, while at the same time offering a high level of protection to employees, so that alternatives to redundancy, such as part-time working or wage cuts, can be found. Nonetheless, the negative implications of such flexibility have subsequently translated into the high level of income inequality in the EU. Falling wages have been one of the consequences of real wage stagnation, made worse by reductions in nominal salaries, notably through greater part time working. In conclusion, the ILO report indicates that “not only did labour inequalities contribute to generating the economic crisis but these inequalities have only become worse as a result of it”. (JK/transl.fl)