Third quarter of 2016- Annual growth in labour costs up to 1.5% in euro area- Up to 1.9% in EU28 // Brussels, 19 December 2016

40. Believes that growing international competition driven by increasingly skilled workforces has left the EU with serious skill shortages and mismatches that are acting as a brake on economic growth; believes that if Member States are to have a realistic chance of reaching the Europa 2020 employment targets, they must focus on creating the right environment for job creation;

39. Believes that growing international competition driven by increasingly skilled workforces has left the EU with serious skill shortages and mismatches that are acting as a brake on economic growth; believes that if Member States are to have a realistic chance of reaching the Europa 2020 employment targets, they must focus on creating the right environment for job creation;

11. Observes that differences in the level of international competitiveness of eurozone economies are partly caused by diverging trends in unit labour costs which reflect different developments in productivity and wage dynamics; notes that in recent years wage growth has remained below productivity growth levels; stresses the need for a fairer distribution of the benefits of growth; calls on shareholders and corporate executives to maintain a responsible policy towards remuneration packages and bonuses at the top corporate levels, which tend to grow disproportionately compared to ordinary salary levels, and thus give the wrong si ...[+++]gnals and discourage support for a responsible wage policy; notes that low inflation rates are also an important influencing factor as regards the favourable development of unit labour costs;

10. Observes that differences in the level of international competitiveness of euro area economies are partly caused by diverging trends in unit labour costs which reflect different developments in productivity and wage dynamics; notes that in recent years wage growth has remained below productivity growth levels; stresses the need for a fairer distribution of the benefits of growth ; calls on shareholders and corporate executives to maintain a responsible policy towards remuneration packages and bonuses at the top corporate levels, which tend to grow disproportionately compared to ordinary salary levels, and thus give the wrong si ...[+++]gnals and discourage support for a responsible wage policy; notes that low inflation rates are also an important influencing factor as regards the favourable development of unit labour costs;

D. Whereas the relative decline of the European economy can be linked to: an inappropriate regulatory framework combined with a lack of structural reform, which renders our economy less flexible than those of our main competitors, stagnant domestic demand, a lack of business dynamism and weak labour markets as a result of slow demographic growth, low employment rates, and poor productivity growth; whereas poor growth is caused by lack of investment, insufficient innovation and a misalignment of labour supply and demand on account of the incapacity of our poorly financed educational and training systems to adapt our workers to an ever-s ...[+++]hifting world;