The labor market in the euro area has been improving since 2013. Although the number of people in work exceeds 2008 levels, the number of unemployed is still over 3 million higher. This discrepancy is due to increased labor market participation as previously inactive people enter the workforce, be it as a result of improving job prospects, such as in Germany, or because the long recession has forced low-income households to look for earnings opportunities, as in Italy.

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Euro area: inflation target will be achieved if unemployment continues to fall

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