Labour market reform is a tricky job for Europe

Rigid labour markets, skills shortages and anti-competitive hiring practices have made it difficult for the eurozone to recover from the crisis. Urgent reform is needed.

FT.com

Europe’s companies need to get the region’s 27 million unemployed people back to work  for the sake of its economic recovery, not to mention political stability.

The European Commission, though, is gloomy. It reckons that unemployment will remain near its current rate of 12 per cent even into 2015. The reason? Although the recessions across the eurozone in the wake of the financial crisis put many people out of work, companies face structural challenges to increasing employment, which have nothing to do with the recent years of upheaval.

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