The slowdown is set to affect employment with the usual lags. Employment in the EU is projected to contract by another ¼% in 2013 after a fall of ½% this year, also because firms now have less scope to react to the demand shortfall by reducing working hours than during the 2008-09 recession. With the projected turnaround of GDP growth in 2013, employment should stabilise towards the end of next year. However, the moderate growth projected for 2014 will generate only modest employment gains, which are expected to remain below the employment losses incurred in.
