ECB's Mersch says productivity drive in euro zone has cost jobs

The drive for more productivity in the eurozone has come through cutting the workforce, a European Central Bank policy setter said on Thursday, warning that such job-shedding could become entrenched.

PHOTO: AFP

FEB 4, 20169:13 PM

[FRANKFURT] The drive for more productivity in the eurozone has come through cutting the workforce, a European Central Bank policy setter said on Thursday, warning that such job-shedding could become entrenched.

"Much of the (meagre) productivity growth seen in the euro area has come through labour shedding rather than from strong value added growth," said Yves Mersch, who sits on the ECB's Executive Board.

"And if those displaced don't have the right skills to find another job, structural unemployment is likely to increase further."

REUTERS