Currently, unit labour costs are 6½ % below their pre-crisis level, while they have risen by 10 % in the euro area as a whole. In the stressed countries, factors of production are being reallocated to sectors with a strong focus on exports.
The construction sector in Ireland accounted for over half of the decrease in aggregate employment; in Spain, Italy and Portugal, it accounted for around two-fifths. In industry, by contrast, either far fewer jobs have been cut or – as in Ireland – new jobs have recently been created. Thanks to improved competitiveness, Spanish exports have risen by 8 % over the past 12 months.