Abstract

This article discusses the changing social distribution of unemployment and long-term unemployment risks during the current financial and economic crisis. These risks are interpreted as the result of three different, overlapping forms of labour market segmentation: firstly, the institutionally stabilized polarization between labour market insiders and outsiders; secondly, the occupational dualization of high- and low-skilled employees and occupations; and, thirdly, the marginalization of disadvantaged social groups. On the basis of EU-SILC data for 24 European countries (2005–2012), it can be shown that (long-term) unemployment risks increase especially for low-skilled persons and occupations, single parents, migrants and ill people. Women, older and permanently employed people are relatively less affected by short-term unemployment but more affected by long-term unemployment. Hence, the current crisis strengthens the occupational and social dualization of labour markets, endangering the inclusiveness and long-term growth potential of the European economy and societies.