On the other hand, sustained and  4  BIS Review 8/2006  stronger than average unit labour cost developments in certain other euro area countries could worsen the competitiveness situation for these countries vis-à-vis the euro area as a whole. Preserving competitiveness by controlling domestic costs is essential for promoting economic activity and employment.
This requires lucidity and appropriate responses by all parties concerned. For companies, it is essential to carefully monitor competitiveness indicators, notably unit labour costs, on a routine basis.