Cover -- Copyright -- FOREWORD -- CONTENTS -- LIST OF FIGURES -- Figure 1.1 Unemployment rates, 1990s, 2007, 2010, 2014 -- Figure 1.2 Labour productivity growth for regions and selected countries -- Figure 1.3 Nominal ULC, productivity and labour compensation, average annual growth rate, 1999 - 2012 (percentages) -- Figure 1.4 U LC-REER dynamics in selected countries, 1999-2013 -- Figure 1.5 Employment rate and Global Competitiveness Index (1 - lowest, 7 - highest)prior to the crisis (2007) -- Figure 1.6 GCI (1 - lowest, 7 - highest) in 2007 and annual compounded growth rateof employment between 2007 and 2013 -- Figure 1.7 Simulation of unilateral wage compression in two-country GEL -- Figure 1.8 Current account of Eurozone 12 countries, 1999-2013 -- Figure 1.9 Decomposing current account into savings and investmentby sectors (2000-2007 average) -- Figure 1.10 Long-term harmonized interest rates, January 2008 to June 2014 -- Figure 1.11 Change in growth decomposition between 2000-2007and 2011-2013 (annual averages) ( -- Figure 1.12 Change in saving and investment contributions to current account -- Figure 2.1 Prosperity gap between EU-15 and Japan, the United States and BRIICS,selected years, 1995 to 2013 -- Figure 2.2 Prosperity gap within EU economies, selected years, 1995-2013 -- Figure 2.3 Decomposition of prosperity growth by labour productivityand labour utilization growth, 2006 and 2009 -- Figure 2.4 Correlation between labour productivityand broader indicators of competitiveness (2013) -- Figure 2.5 Labour productivity growth (in Euros) in selected countries -- Figure 2.6 Output per hour worked, EU-15 vs. United States, 2001-2013 -- Figure 2.7 Growth of nominal ULC and GDP per capita, 2000-2012 -- Figure 2.8 Relationship between price competitiveness and trade balance, 2006-2012.

Figure 2.9 Relationship between price competitiveness and export growth, 2006-2012 -- Figure 2.10 Nominal ULC in non-agricultural tradable sectors, 2000-2011 -- Figure 2.11 Trends in sectoral employment in the EU-28, 1991-2013 -- Figure 2.12 EU average annual growth of productivity and employment, 2007-2012 -- Figure 2.13 Trade opening with retraining in place -- Figure 3.1 Change in jobs associated with GVC in EU-15, 2000-2007 -- Figure 3.2 Change in jobs associated with GVC in remaining EU economies, 2000-2007 -- Figure 3.3 Difference in hourly labour cost (Euros), 2004-2013 across the EU -- Figure 3.4 Change in manufacturing and service sector jobs associated with GVC,2000-2007 -- Figure 3.5 Private sectors subject to boom-bust, 2001-2013 -- Figure 3.6 Impact of the sectorial employment structure on the probabilityof economic growth slowdowns and accelerations -- Figure 3.7 E mployment change in sectors OPQR and total employment change, 2008-2013 -- Figure 3.8 Employment growth and ULC in selected service sectors -- Figure 3.9 GVC employment share and growth (2011 relative to 2007) -- Figure 3.10 Fundamental drivers of employment -- Figure 3.11 Moderating effect of export diversification -- Figure 4.1 Social protection expenditure EU-27, 2007 -- Figure 4.2 Employment and inverse poverty EU-27 (2007) -- Figure 4.3 Social protection receipts EU-27, 2007 -- Figure 4.4 Changes in inverse poverty and changes in employment rates -- Figure 4.5 Impact of trade opening on domestic economy -- Figure 4.6 Inequality in gross market income and redistribution before and after the crisis -- Figure 4.7 Expenditures on social protection and redistribution, 2007 -- Figure 4.8 Expenditures on social protection and redistribution, 2012 -- Figure 4.9 Employment rates and total labour costs before and after the crisis.

Figure 4.10 Employment and marginal tax rates of second earners (2012) -- Figure 4.11 Employment by age group and marginal tax rates of primary earners (2012) -- Figure 4.12 Total labour costs and social security contributions (2012) -- Figure 4.13 Productivity and social protection expenditures -- Figure 4.14 Social security contributions and tax revenue as a percentage of GDP (left) -- social protection expenditures as a percentage of GDP (middle) -- employment and inequality (right) -- Figure 4.15 Unemployment response to negative demand and supply shock with and without EUI -- LIST OF TABLES -- Table 1.1 Correlation between average employment rate and GCI pillars (2007):R egression results -- Table 1.2 Employment rate developments in the EU-28 since the crisis -- Table 2.1 Overview of major competitiveness index frameworks -- Table 2.2 Country rankings according to different measures of competitiveness (average 2006-2012) -- Table 2.3 Spearman's rank correlation coefficientsapplied to different measures of competitiveness -- Table 2.4 Share of non-agricultural private sector employment, excluding real estate,for selected countries, 2001-2011 -- Table 3.1 Export growth contribution and external balance change, 2000-2007 -- Table 3.2 Estimated determinants of GVC jobs -- Table 4.1 Policy changes after the crisis -- Table 4.2 GCI-ranking for relevant sub-indicators 2013 -- Table 4.3 GCI sub-indicators and productivity across Europe after the crisis: Unconditional correlations and partial correlations -- LIST OF BOXES -- Box 1.1 The ULC-REER -- Box 1.2 Correlation between average employment rate and GCI pillars -- Box 1.3 Wage moderation and demand -- Box 1.4 Neoclassical predictions on financial integration -- Box 2.1 Origins of the concept of competitiveness and modern use -- Box 2.2 Europe's persistent productivity gap with the United States.

Box 3.1 Computing GVC-related jobs -- Box 3.2 Central and Eastern Europe (CEE) in intra-European value chains -- Box 3.3 Sectorial employment and economic growth dynamics in EU countries -- LIST OF ABBREVIATIONS -- EXECUTIVE SUMMARY -- Chapter 1 The Euro crisis,competitiveness and the labour market -- Introduction -- A. Competitiveness and labour markets -- B. What led to the crisis? -- C. Focus of the report -- References -- Chapter 2 Competitiveness and jobs -- Introduction -- A. Concept of competitiveness -- B. Broader concepts of competitiveness -- C. Conclusion and policy implications -- References -- Chapter 3 Competitiveness and jobs in the GVC -- Introduction -- A. Employment shares in global value chains -- B. Employment and structural transformation -- C. Decomposing drivers of job loss: The GEL model -- D. Balanced and sustainable employment growth -- Appendix A -- References -- Chapter 4 Social protection and competitiveness -- Introduction -- A. Divergence in social policies and competitiveness -- B. Links between social protection, productivity and competitiveness -- C. Restructuring social protection to improve competitiveness -- Appendix A -- References -- Annex: The GEL model:Technical details.