Finally, one should not forget that the development of employment is to a substantial amount determined by the competitive conditions on labour and product markets: an increased competition on these markets decreases the pricing power for firms and the rents they are able to earn, and lowers pressure on wage increases.
This is particularly important for employment growth in the services sectors, which are less exposed to international competition. In this area, structural reforms can yield further reduction in price pressures and at the same time create conditions for moderate wage developments that could enhance more pronounced employment creation.