In fact, skills mismatch has increased noticeably in the euro area and seems to be becoming more entrenched. 2 Potential solutions to increase high qualified employment If labour market developments are so heterogeneous across countries, why don’t the unemployed simply move to places where the demand for labour is higher?
Indeed, labour mobility is a powerful tool for tackling high localised unemployment levels and alleviating emerging bottlenecks in faster-growing euro area economies. That is why labour mobility is a core element of a successful currency union. It leads to a better match between workers’ skills and employers’ demands.