Catherwood LibraryILR School

The European Union commission recommended to member nations today that they continue support programs for the labor market. The commission says that measures used so far have helped to keep unemployment from rising as high or as quickly as they had feared, but, since unemployment numbers are expected to continue to rise through 2010, the commission warns that cutting off support programs too quickly could have dire consequences. Programs include work-share schemes, wage-subsidies, and increased public-sector hiring. However, many nations are starting to feel the crunch of funding widespread employment programs, with budget deficits emerging in many countries. The commission suggests trying out ways to reduce 'unemployment traps' and get people back to work quicker, reducing the amount of welfare money being paid out. They maintain that it takes a delicate balance to keep going long enough, but not so long that you run out of funds.