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Jason Heyes and Thomas Hastings

European labour markets and labour market policies have been substantially affected by the economic crisis that unfolded after 2008. Following the initial increase in government spending aimed at offsetting the financial crisis, EU countries began, to varying degrees, to embrace austerity, cutting public spending while seeking to reignite economic growth by introducing structural reforms. This chapter examines the impact of the crisis on the labour markets of different EU member countries and the policies that have been adopted to address these impacts. The chapter also examines the consequences of the crisis for migration within the EU. The chapter concludes with some reflections on the current policy drift within the EU and the implications for the European Commission’s flexicurity agenda and ambitions relating to Europe 2020.