An exceptionally large fraction of those now unemployed – more than 40 percent – have been out of work for six months or more. My concern is that individuals with such long unemployment spells could become less employable as their skills deteriorate and as they lose their connections to the labor market.
The European Commission recently published a legislative proposal to translate the Basel III rules into EU law, which will affect over 8,000 banks. The Commission cited the IMF’s loss estimates in its justification for this move.