Headlines

• Following the economic crisis, the pace of labour reallocation towards the service sector slowed down, adversely affecting EU employment growth.
• Unemployment rose in Southern Europe as a result of demand weakness exacerbating lower levels of participation in value chains.
• Job creation in Central and Northern Europe continued to thrive, due to an active service sector and limited losses in external competitiveness.
• A differentiated picture emerges for countries which have joined the EU since 2004; those more integrated in EU value chains made a more successful structural transformation and reaped the benefits of gains in productivity.