Labour market reform to continue, says ECB

The European Central Bank (ECB) is to publish a report today on mismatches between labour supply and demand in euro area countries…

The European Central Bank (ECB) is to publish a report today on mismatches between labour supply and demand in euro area countries.

The report is expected to advocate a continuation of labour market reforms reflecting shortfalls in the availability of labour in some sectors.

Labour market analysts from the central banks of the Eurosystem have prepared the report, which gathers statistical evidence on the matching process in euro area labour markets and discusses policy measures for its improvement.

The report concludes that the specific labour market reform measures taken in euro area countries during the 1990s contributed to the strong employment growth and the considerable reduction in unemployment witnessed in many euro area countries during the last cyclical upswing.

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However, the evidence gathered also indicates that significant mismatches are still present in a number of areas, leaving scope for the continuation of the labour market reform process.

The report is available from the "Publications" section of the ECB's website.