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Labour Market Resilience in Europe

INSPIRES labour market indicator – Represented by the unemployment rate. Unemployed persons are defined as all persons who were not employed during the reference week, had actively sought work during the past four weeks and were ready to begin working immediately or within two weeks according to the Eurostat.

INSPIRES poverty and social exclusion indicator – Represented by the AROPE (At risk of poverty and social exclusion), provided by the European Union Statistics on Income and living conditions (EU-SILC). This indicator contains three sub-indicators : poverty risk rate, severe deprivation, low labour intensity.

Total population

Youth – between age of 15 and 24

Older persons – between age of 55 and 64

Migrants – foreign citizens with citizenship of a non-member country

Residual scores 2007 - Residual score reflects the difference between the observed (actual) and predicted values, based on estimated regression equations for 2007

Residual scores 2010 - Residual score reflects the difference between the observed (actual) and predicted values, based on estimated regression equation for 2010

Changes in residual scores (2007- 2010) - The change is based on the difference between the residual scores. The difference has been calculated by subtracting the value of the residual score for 2007 from the value for 2010

Change in actual values (2007-2010) - The change is based on the difference in actual values. The difference has been calculated by subtracting the actual value of the dependent variable for 2007 from the value for 2010

The interactive map of labour market resilience, developed by the Erasmus University in Rotterdam, depicts the analysis of the total population, youth, migrants and older persons across 29 European countries and lists state-level data on two main aspects of labour market resilience: unemployment rate and at risk of poverty and social exclusion. 

The analysis methodologically adopted a cross-sectional approach and focused on two points in time - before (2007) and after/during (2010) the crisis - in order to observe changes associated with the recession. The predicted values and unstandardized residuals have been calculated based on the estimated regression equations. 

Based on the residuals (for 2007 and 2010) and changes in residuals (between 2007 and 2010) a ranking of countries has been created, which orders countries from the lowest to the highest values. Countries with lower scores in residuals (below 0) are considered as more resilient, whereas countries that score well above 0 are less resilient.
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