It is of the utmost importance to implement policies than can bring about a lasting reduction in unemployment. Clearly, the approaches that are most likely to have a lasting effect are those that address the root cause of the problem, not just the symptoms.
The root causes of high unemployment in the European Union are structural rigidities in the labour market as well as tax and public transfer policies. This view is supported by a wide body of academic literature and was also a key finding of the OECD Jobs Study. It is obvious that structural problems require structural solutions.