EU unemployment and global value chains

Abstract This paper examines the relationship between globalization and unemployment in the EU from 1990–2015, focusing on Global Value Chains (GVCs). We analyze the effects of the composition of the workforce and GVC-type trade on unemployment. Our findings show that GVC participation reduces unemployment in less advanced EU economies but increases it in core countries. Lower labor costs and low-skilled workers enhance the positive impact on reducing unemployment. Some sectors (especially services such as Telecommunications) experience significant employment gains. We recommend policies to remove regulatory barriers and support technological advancement to ensure equitable benefits from GVC integration across the EU.