Crisis conditions have returned in much of the region, and the loss in risk appetite of investors in Europe is spreading more widely.
Uncertainty makes firms reluctant to hire.
Unemployment at 8.6 per cent in 2012, is expected to rise further this year and decline from 2014 onward.
Youth unemployment is particularly acute in Europe, topping 50 per cent in some countries. Increasing numbers of youth have given up looking for a job.
Almost 34 per cent of job seekers have been unemployed for 12 months or longer, up from 28.5 per cent before the crisis.
Skills mismatches are increasingly affecting labour markets.
Labour productivity improvements within services are projected to be the main growth engine in 2011-17. (See 2nd chart below)
