Deteriorating Jobs Outlook Across the EU

Across the European Union, the jobs outlook is steadily worsening. According to a Gallup report, over 90% of citizens in Greece (98%), Italy (95%), Spain (94%), and Ireland (92%) think that it is a "bad time" to find a job in their area. The majority of citizens in 25 of the 27 countries in the European Union report a pessimistic job outlook. This finding coincides with Eurostat's findings that the EU is currently experiencing some of the highest unemployment levels ever recorded in Europe. Countries with the most staggering unemployment rates include Spain (23.8%), Greece (25.1%), Latvia (15.9%), Portugal (15.7%), Ireland (15.1%), and Slovakia (13.9%). The jobs outlook across the EU has worsened since 2011, and in recent months (August 2012-September 2012), unemployment levels have continued to decrease. Since 2011, the jobs outlook has gotten significantly worse in Finland, the Netherlands, Luxembourg, Belgium, Sweden, France, Austria, Denmark, Hungary, the Czech Republic, and the United Kingdom.

It is important to note that since 2011, there have been improvements in the jobs outlook in Latvia and Estonia. Additionally, the majority of Germans (46% compared to 43%) and approximately 1/3 of Swedes (32%) and Austrians (35%) feel that it is a "good time" to find a job in their country. Comparatively, 25% of Americans feel it is a "good time" to find jobs in their area. Also, the estimated percentage of the population that is employed by a full time employer has remained stable in most EU countries in 2012.

However, the countries that have severely pessimistic jobs outlooks also have the lowest percentage of full-time employees. Less than 1 in 3 adults are employed full time in Greece, Romania, Italy, Belgium, Spain, and Ireland. Because of the decreasing percentage of the population that is employed full time, the tax-base is shrinking. Therefore, countries across the EU are not just facing high unemployment levels and dismal job outlooks; they are facing long-term economic instability.

Internet Economy Expected To Grow Rapidly

As the world enters the information age, and the Internet continues to assimilate into the everyday lives of billions of people, the question begs: how impactful is the Internet to the economy?  The Economist has released a graph based on a recent report from the Boston Consulting Group (BCG) detailing the Internet’s contribution to the economies of the G20 countries.  The Internet economy in Britain is now larger than its construction and education sectors, comprising over 8% of GDP and forecasted to amount to over 12% by 2016.  BCG predicts that the Internet economy will grow at more than 10% annually, and by 2016, will comprise 5.3% of GDP in the G20 nations.  BCG also notes that as of now, the European Union has not capitalized on Internet revenues due to a lack of a single, all-encompassing digital market.

Asset Performance: the Winners and Losers

The Economist recently published data focusing on the asset performance of bonds, equities, and precious metals. Although many sectors of the world economy have taken hits, government bonds and gold have fared well. As The Economist explains, this is likely because many people view these assets as "stores of value", or safe investments. However, not all government bonds have thrived during this time. Greece bonds had the lowest returns, with EU Carbon credits coming in second and Egypt equities in a distant third.