If people perceive a significant improvement in the job market, new job seekers may enter or re-enter the labor force as employment grows. To illustrate the possible implications, let us suppose that improving job prospects lead the participation rate to rise 0.1 percentage point in April, from 65.9 percent to 66.0 percent. (Remember, the rate was 66.5 percent as recently as last June.)
4  BIS central bankers’ speeches  It is down to the private sector to define effective responses to the challenges of external competition, the market opportunities and the evolution of knowledge and technology. In this regard, I would like to outline two aspects that I believe are particularly relevant. Firstly, the capitalisation of Portuguese companies needs to be strengthened.