The Eurozone crisis and unemployment in Cyprus and Ireland

Abstract

This dissertation will be discussing the Eurozone crisis’ effect on unemployment in Ireland and Cyprus. The financial crisis hit the Euro area about a decade ago and certain members of the Eurozone are still dealing with its effects till this day. This dissertation aims to gain insight on Ireland and Cyprus’ unemployment different development.

This study is being approached through a comparative case study design, using quantitative and qualitative data analysis. This is done by taking two case studies to answer the research questions by comparing Ireland and Cyprus’s unemployment rates. This analysis aims to answer whether the reason for the high unemployment rates in Ireland and Cyprus were because of cyclical or structural indicators or labour mobility.

This study finds that the underlying problem that caused Cyprus’ unemployment recovery to be lower than Ireland’s was more of a cyclical problem rather than by structural issues or labour mobility. During the period analysed, the levels of real GDP growth, exports, consumption and government expenditures showed that they contributed to the difference between the unemployment rates of Ireland and Cyprus.