The total labour market participation rate rose to nearly 71%, and the employment rate rose to over 65%. The period since 1999 is also characterised by a change in labour supply composition. Women have entered the labour market in increasing numbers. In addition, older workers have tended to remain in the labour market for longer, which is welcome in view of population ageing.
Immigrants have contributed positively to labour supply, helping to fill skills shortages. The share of workers with tertiary level education has increased. These are encouraging developments, resulting from the implementation of structural reforms in product and labour markets, increased immigration and wage moderation. Nevertheless, progress has been quite uneven across countries and significant challenges remain.