Employment growth, the other pillar of the European recovery

Faced with numerous external shocks, the resilience of domestic demand in the Eurozone is largely based on the improvement of labour market conditions. The risk is that, as gloom sets in or worse intensifies, companies will reduce hiring, banks will tighten credit standards, which will magnify the cyclical slowdown. To date, the pace of job creation has not really slowed, with one notable exception, temporary staffing. This mainly reflects the weakness of the industrial sector, a...