ABSTRACT
Even if we were to accept the rather optimistic expectations1 with regard to the future trend of economic growth, the acute unemployment problems of the European countries would not be anywhere near being solved within a foreseeable period. Regardless of the success of national economic policies, the question thus arises, at least in the short and medium terms, what additional possibilities exist for creating more employment? To bring unemployment down to the levels recorded in the US and Japan requires not only strong economic growth but also more employment-intensive growth.2 The inadequate employment intensity of economic growth is widely considered to be one of the most important reasons for the employment malaise from which Western Europe is suffering. The required increase in the employment intensity of growth can be achieved by more wage and/or more working-time flexibility.
