Functioning of Labour Market


This concerns macroeconomic impacts such as labour market participation, the long term unemployment rate; regional differences in employment rates; wage levels and stability and their links to aggregate demand and supply; and labour productivity. Labour supply is thereby influenced by a broad range of variables, beginning from absolute wage levels, relative wage levels in one sector as compared to another sector, but also the institutional arrangements made to reconcile professional and private life and the efforts to facilitate diverse forms of mobility.
Policies can affect the functioning of labour market directly (e.g. limiting the barriers to new entrants in administrative or legal professions) or indirectly, by requesting skill upgrade for certain professions or tasks. Some policies may also affect market structure, favour concentration, thus reducing the possibility for self-employed persons to compete effectively.

Guiding Question

Does the policy option have an impact on the functioning of the labour market?

Relevant Policies

  • European Employment Strategy
  • Europe 2020


Further Sources of Data

Further Sources of Information

Eurostat Indicators

  • Labour productivity per person employed
  • Labour productivity per hour worked
  • Unit labour cost growth
  • Inequality of income distribution
  • Dispersion of regional employment rates
  • Total long-term unemployment rate

available under

Other Official Indicators