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Labour Market Working Group

Job creation is the centerpiece of the Lisbon Strategy. In order to achieve the Lisbon targets it is essential to analyse the functioning of labour markets and to review labour market reforms in line with the Broad Economic Policy Guidelines.


The LMWG should within the framework of the Broad Economic Policy Guidelines (BEPGs):

  • add value to EPC and Ecofin by providing relevant analysis on labour market issues and policy implications.
  • support the country reviews by monitoring labour market issues and reforms implemented in EU Member States, including where appropriate the interaction of labour markets and macroeconomic developments as well as product market reforms, and wage developments.

Contribution to the work is expected from the Commission as well as Member States. The LMWG should also draw on related work carried out by other institutions such as the OECD.

Main tasks

The Group provides analysis, including on a cross-country basis, for the following purposes:

  • in support of the Committee's work on the BEPGs and country reviews:
    • labour market developments, including labour supply (with focus on specific critical groups particularly employment of older workers); tax benefit reforms and employment protection systems;
    • support for the LABREF catalogue of labour market reforms as an important tool to track reform in labour markets over time.
  • preparation of material on specific issues of interest, such as flexicurity andtax-benefit systems and their impact on labour supply, quality of labour force, and, where appropriate, wage developments.

Furthermore, the Group discusses the annual review of labour market developments and wage trends.


The LMWG engages members from all Member States and the ECB. The Employment Committee (EMCO) nominates three participants to be represented at the LMWG meetings. The OECD participates as an observer.

Interactions with the work carried out by other groups

The working group should maintain close and efficient cooperation with other EPC working groups, in particular the Country Reviews Working Group, the Working Group on Methodology to assess Lisbon related structural reforms (LIME), the Ageing Working Group, as well as the Ad Hoc Group of the Employment Committee (EMCO).

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