The labour market participation rates of women and the youngest and oldest age groups remain too weak in many countries. Thus far, progress with the implementation of labour market reforms has been uneven in the euro area. In some countries, significant achievements in terms of lower unemployment are already visible. Others are lagging behind.
Unemployment is still a bit higher than our estimates of the rate consistent with full employment. Inflation is still a bit low. It is therefore appropriate that monetary policy should be supporting the economy right now.