Overall employment and incomes would have fallen even further were it not for the offsetting performance of exporting firms despite the much weaker international environment even than was expected two years ago.
Lastly, although major progress has been made, euro area countries need to strengthen their efforts to reform their labour and product markets in a decisive way in order to improve competitiveness, raise potential growth and generate employment opportunities. More precisely, labour markets need to be more inclusive, flexible and resilient, while product markets, including those for services, should be made more efficient and dynamic.