The European labor markets stood still for several months when the virus hit due to job retention schemes financed by government. However, while furlough schemes are being extended to cushion the impact of the pandemic on the labor market, the unemployment rate could reach double-digit figures in France, Spain, and Italy. The resurgence in COVID-19 cases in August has slowed the economic recovery pace of Q3. There has been a deceleration of the recovery, particularly services. The Conference Board’s base case scenario for Europe forecasts that the output levels return to pre-pandemic levels only by the end of 2021 or beginning of 2022.