Unemployment in European Union: theory, evidence and econometric analysis for Portugal

The crisis which has broken out by 2008 is influenced on all the world and appeared as serious employment problems. Particularly increasing of prosperity at the beginning of 21st century could not have been continued due to that crisis. Contrary to this, some economies that aimed to keep the same welfare level has undergone debt burden. As for European Union, they lived the years with high welfare as well and European countries which has no strong dynamics compared with others had to face great debt crisis as never seen before. With being detected of that, economies, affected profoundly by the crisis set off to create policies in order to discrease the spend of government and that brought about enormous employment troubles. Moreover, abstention behaving of developed countries concerning help to others in the Union is made the situation complicated for the region. The purpose of this study will be to explain how European Union has been affected by the crisis in 2008 throughout events in the mean of labor economics. During this period, it will also look into the topic of employment and the unemployment, the biggest problem in labor economics theoretically and then try to create observations by using macroeconomic data of countries influenced by debt crisis virtually. Additionally, in order to show the effect of crisis it will tend to Portugal economy along with Greece and Spain and give a try to determine likely reasons of escalating of unemployment rate by using macroeconomic data and econometric model. As result of those it will be clear that assumptions are considerable for Portugal and Greece but not for Spain because no information enabling to support any situation.