Assessment of the Similarity of the Situation in the EU Labour Markets and Their Changes in the Face of the COVID-19 Pandemic

Abstract

The aim of the study is to assess the similarity of the situation in the EU labour markets and their evolution using selected indicators in the period before and during the COVID-19 pandemic. The benchmark are the countries that most closely meet the Sustainable Development Goals related to the labour market. We use quarterly data from Eurostat presenting the basic indicators of the labour market: unemployment, employment, and activity rates. We analyse all indicators for the total population, young people, and people aged 55+. We assess the similarity of the situation using the TOPSIS method and similarity of changes by means of the Dynamic Time Warping. We obtain homogeneous groups of countries due to similarity of time series using hierarchical clustering. We conduct the analysis in two periods: the years 2018 and 2019 (pre-pandemic period) and from the beginning of 2020 to the present (pandemic period). The composition of the clusters in the pre-pandemic and pandemic periods is different. The impact of the COVID-19 pandemic on the situation in the labour market can be noted. This is a result of different degree of development of labour markets, which had an impact on coping with the effects of the crisis caused by the pandemic.