| Abstract: |
This report describes the implementation and changing features of job retention schemes in the EU between 2020 and 2022. In response to the COVID-19 health emergency, EU governments swiftly deployed job retention schemes to preserve employment, support businesses and maintain individual incomes. The report shows that, following an initial period during which job retention schemes underwent numerous changes in their eligibility and conditionality criteria, the institutional features of job retention schemes stabilised as the pandemic progressed. Furthermore, the report demonstrates that a high degree of heterogeneity in the features of the schemes was maintained throughout the pandemic and its aftermath. While some of the schemes expired with the end of the pandemic, others were transformed into permanent institutions of the labour market. The report also analyses the employment and distributional effects of job retention schemes, highlighting their significant effects in terms of number of jobs saved and share of personal incomes maintained during the pandemic. An estimated 24. 8 million jobs were saved in the EU in 2020 through the use of such schemes. Furthermore, the schemes absorbed more than one-third of the income shock produced by the COVID-19 pandemic in 2020 and more than one-fifth of the income shock in 2021. |
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(Universitat Autònoma de Barcelona)
