Furthermore, the crisis has led to more frequent use of temporary employment contracts in the southern European countries. In the last quarter of 2012, a total of 23 pct of the workers in Greece and Spain and 20.4 pct in Portugal had temporary contracts. This high incidence of temporary contracts contributed to lower levels of training and skills acquisition, which in turn translates into lower productivity and poorer economic performance according to the European Commission report. In southern Europe, the share of lower educated employees is 33 pct, more than twice the EU average (16 pct).
According to Commissioner Laszlo Andor for Employment, Social Affairs and Inclusion, "diverging job prospects in northern and southern Europe underline mismatches in the European labour market, linked also to Eurozone asymmetries. Labour mobility might help to reduce those imbalances."
The report notes that the overall weak economic performance has continuously worsened labour market conditions in the southern European countries worst hit by the crisis. In the second quarter of 2013, employment fell in Greece (-4.3 pct), Italy (-1.8 pct), Portugal (-4.1 pct) and Spain (-3.6 pct) in year-to-year figures. In the EU 28, employment fell by -0.4 pct.
This situation has largely worsened youth unemployment in these countries. In the second quarter of 2013, youth unemployment rate reached 59.6 pct in Greece, 55.7 pct in Spain, 39.4 pct in Portugal and 38.9 pct in Italy compared to 24 pct in the EU.