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ECB mostly upbeat on eurozone employment

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By Euronews
ECB mostly upbeat on eurozone employment

<p>Employment in the eurozone is rising faster than expected according to the <a href="https://www.ecb.europa.eu/pub/economic-bulletin/html/eb201606.en.html">latest economic bulletin</a> from the European Central Bank. </p> <p>In proportion to <span class="caps">GDP</span> growth, employment is now rising as fast, if not faster, than before the 2007 debt crisis they say, fueled by an increase in part-time work and the service sector growing. </p> <p>And that is most pronounced in places like Germany and Spain where reforms have increased flexibility in the labour market.</p> <p>Those two countries have produced two-thirds of the jobs gained in the last three years.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Economic Bulletin Article: The employment-<span class="caps">GDP</span> relationship since the crisis <a href="https://t.co/jhZU6hEVHR">https://t.co/jhZU6hEVHR</a></p>— <span class="caps">ECB</span> (@ecb) <a href="https://twitter.com/ecb/status/778505227309813760">September 21, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>But even as people are getting back to work quicker than earlier hoped, productivity is declining and the <span class="caps">ECB</span> experts believe that could have a negative effect on the eurozone’s long-term economic growth.</p> <p>“Stronger employment growth has doubtless provided support to household incomes, but has also further weakened aggregate productivity growth, which was already notably weaker – even at the sectoral level – than in the pre-crisis period on both sides of the Atlantic,” the <span class="caps">ECB</span> said.</p> <p>“These common trends in productivity growth may imply risks to the long-term growth outlook,” it added.</p> <p>Another negative – average hours worked are stagnating, so more people are employed but work less than before the pre-crisis years, a sign of underemployment.</p> <p>With <a href="http://uk.reuters.com/article/us-eurozone-economy-employment-idUKKCN11J1C8">eurozone unemployment still around 10 percent</a> and youth unemployment above 20 percent – and much higher in some countries – policymakers have been concerned that a large part of a generation may fall out of the labour market permanently.</p> <p>That would be a costly legacy of the crisis that could take decades to resolve, all the while eating into state budgets.</p>