While Europe’s unemployment rate is still
modest compared with the spike seen in many
other countries, economists predict it could
hit double digits in coming months as wage
support programs expire. A resurgence in
infections in many countries has meanwhile led
to new restrictions on businesses and public life
may that may have to be broadened and could
lead to more layoffs.
European governments have approved trillions
of euros (dollars) to help businesses, setting up or
bolstering programs to keep workers on payrolls.
In the region’s largest economy, Germany, some
3.7 million people are still on furlough support
programs. With no clear end to the pandemic in
sight, the government has extended that through
the end of 2021. The program pays over 70% of
the salaries for workers put on short hours or no
hours. The European Central Bank is injecting 1.35
trillion euro ($1.57 trillion) into the economy.
But while such help has slowed the wave
of unemployment, jobs continue to vanish.
Companies in the hardest hit industries such
as tourism, travel and restaurants expect a
long period of weak business and are laying
off workers.
In the center of the Portuguese capital, Lisbon,
laid off restaurant worker Mary Lopes, 21, was
not put on a furlough scheme by her employer
and is still waiting for unemployment papers.
The restaurant she worked in close down
completely in March. When it reopened, only
a few of the staff were kept on, under tougher
conditions, and the others were left out of work.
“I’ve been working since I was 16,” said Lopes. “I
was a good waitress - I know I was a very good