Croatia recorded biggest fall in employment income in coronavirus crisis
National governments have put in place or activated short-term work schemes to address the coronavirus economic challenges, in particular, policies to preserve jobs (wage compensation schemes).
These contributed to mitigate the income loss in all EU countries with the overall income loss reduced by half.
The year on year change ranges from -12% to -1% with the largest income losses in Croatia.
Latvia is the country where employers lost the lowest amount of incme.
The estimated income loss for workers is simulated according to three types of labour transitions that workers can undergo: to unemployment, transition to absent or working reduced hours while remaining employed.
The two latter forms are specific to the current crisis and are estimated based on the economic shutdown in the second quarter of 2020.
The total employment income at EU level decreases by -4.8%, with the largest decreases due to absences and reduced hours.
According to Eurostat estimations the number of people absent or working reduced hours in the middle of the lockdown in April range across countries from 1% up to 50% in the most affected countries.
Moreover, in about half countries (12) the share of people working 80% or less hours is above 20% while in another 11 countries this share ranges between 11% and 20%.
This translates into a 4.2% loss in employment income at EU level, due to absences and working reduced hours.
The highest total income losses are estimated for Croatia (10.6%). ■