When the COVID-19 pandemic
arrived in Europe at the start of 2020, States and local
authorities took action to combat the spread of the virus and
mitigate the effects of the social and economic crisis caused by
the health emergency.
The pandemic's impact was largely dependent on the diverse local
and socio-economic situations, according to the Geography of
COVID-19 study by the ESPON European cooperation programme
specialized in regional analysis.
Specifically, the research showed that a contraction of the
economy was registered during the first wave of the pandemic in
all of the areas analysed (Milan, Athens, Amsterdam, Barcelona,
Elvas, Hannover, Helsinki, Iaşi, Malmö, Réunion, Mayotte,
Veszprém, Corsica and the Azores).
The regions strongly reliant on tourism, such as Barcelona,
Elvas, the Azores and Corsica, were hit hard.
The blow suffered by regions with more diversified economies,
such as Malmö, Iasi and Veszprém, was softer.
The economic recovery also seems to have been more rapid in
these areas compared to the tourist areas.
Lombardy, which suffered serious economic losses during the
first wave because its contagion rates were among the highest in
Europe and required rigorous restrictive measures, is a special
case.
Some sectors bucked the trend and registered increases in
revenue during the pandemic.
In Milan, for example, the pharmaceutical and food sectors grew,
while in Iasi the ICT and building sectors registered growth.
Unemployment also rose in all of the areas studied, but the job
losses were more pronounced in some regions, such as Lombardy,
than others, such as Iasi and Elvas.
The reduction in employment levels was particularly pronounced
in tourism, but also in the services, culture and retail
sectors.
The young and people employed on temporary contracts were the
most exposed to the risk of losing their jobs.
In late 2021 the labour market had still not completely
recovered in several of the areas studied, such as the Azores
and Barcelona. while it had almost returned to pre-pandemic
levels in Elvas, Amsterdam and Veszprém.
In the last two cases, the main labour-market challenge is no
longer unemployment, but the shortage of workers.
In Malmö, on the other hand, there is a growing gap within the
labour market.
On the one hand, the temporary unemployed re-entered the world
of work relative soon after losing their jobs, especially if
they were qualified, while, on the other, the long-term
unemployed were still facing major hurdles to return to it.
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