The impact of 2008 global financial crisis on long term unemployement and employement policy: EU and Turkey comparison

After the acceleration of globalization, Financial crises has become more common. Financial crises occur regionally or sectorally. In that markets are deepening and becoming interdependent, crises are spreading over large areas. In 2008, the crisis that started in the housing market in the United States, spread first in United States then throughout the world. While almost all macroeconomic factors were affected by the 2008 global financial crisis, the most affected variable was unemployment. Within a year, there was a significant decline in investments and trade. As a result, businesses have dismissed workers priorities to maintain their continuity. The dismissal of the workers during the global crisis cause an increase in unemployment rates and an increase in the duration of unemployment. It is defined as the long-term unemployed who is unemployed for one year or longer than the unemployed in the labor market. Being for year or more, it makes unemployment a structural and chronic problem. Despite the facing large mass long-term unemployment in our country the lack of studies on this subject makes the study necessary. Moreover, the biggest unemployment problem in European Union countries is long term unemployment. Therefore, this study was conducted about the long-term unemployment by taking the European Union countries and Turkey. According to the results of the study, long-term unemployment in the European Union countries and Turkey, has been identified as an important issue. In order to overcome this problem, it is emphasized that the countries can be enabled by active and passive employment policies which will be determined in accordance with their economic and social structures.