Unemployment in the OECD area is projected to rise by over 25 million from 2007 to 2010, by far the largest and the most rapid increase in the post-war period. But some countries’ labour market have been hit harder than others during the Great Recession. According to this OECD working paper, institutions (such as Employment Protection Legislation, average replacement ratio and product market regulation) influence both the extent of the initial shock and the adjustment pattern in the aftermath of a downturn. Especially stringent institutional settings seem to magnify a crisis’ effect on structural unemployment, the researchers say.