In a number of countries, including the United States, these declines have been accompanied by strong labor markets and a much lower unemployment rate. Such changes in the macroeconomic environment are significant because the long-run normal levels of inflation, output, interest rates, and the unemployment rate are important structural features by which we guide policy.
These relatively low growth rates are linked to a deterioration of competitiveness, driven, for example, by persistent above average unit labour costs. Precisely as regards the evolution of unit labour costs, that are so important for growth, dispersion both ahead of the crisis and during the crisis was quite similar in the euro area and the United States. (Chart 3.)