The Impact of Unemployment on the Welfare State in Europe

Jan 26, 2026

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This report explores the dire consequences of the ongoing unemployment crisis in Europe, particularly focusing on Spain's staggering rate of enterprise closures and youth unemployment. Since the crisis began, an alarming number of businesses, approximately 430 daily, have shut down, resulting in 179,468 closures in just three years. With 12.7% of enterprises lost since 2007 and growing unemployment rates among young people, the crisis challenges the stability of the welfare state and raises concerns about future economic recovery.

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The Impact of Unemployment on the Welfare State in Europe

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The crisis and the welfare state
UNEMPLOYMENT IN EUROPE
UNEMPLOYMENT RATE
YOUNG UNEMPLOYMENT
YOUNG UNEMPLOYMENT RATE

ENTERPRISES CLOSEDOWNS IN SPAIN • 430 ENTERPRISES HAVE CLOSED DOWN EVERY DAY IN THIS THREE YEARS since the crisis started • Since the crisis started, three years ago, 179468 enterprises had to close down. • One out of eight enterprises had to close due to the fall of the demand. • That means, not more and not less, that 12,7% of enterprises have disappeared since 2007.
GDP • Gross domestic product (GDP) refers to the market value of all final goods and services produced within a country in a given period.