efficiency of cross - border mobility in order to fully reap the benefits of workers ’ migration. one issue is that recognition of qualifications remains uneven across eu member states. according to a recent survey 5, current procedures that tend to be cumbersome could easily be replaced by more automatic ones : more than 90 % of requests submitted result in the qualifications being recognised. but even if their qualifications have been recognised, migrants might simply not be able to take up a position matching their level of education owing to lack of language skills. more training in this area would certainly be welcome. beyond efforts at member state level, the reformed european social fund could be instrumental in this respect. among other things, its objectives include investment “ in education, skills and lifelong learning ”, as well as measures for “ promoting employment and supporting labour mobility ”. it is up to the european commission and the member states to make the most out of the opportunity for mobility through operational programmes, such as language courses or exchange programmes. another barrier to workers moving from one country to another is that they are uncertain as to what will happen if they cannot find employment immediately. unemployment benefits are transferable only to a limited extent. eu law has been adjusted accordingly and now needs to be implemented rigorously. the same applies for the transferability of pension rights. to summarise, adjustment through mobility is not merely a theoretical concept, but a european reality. however, there is scope for both more inter - regional and more intercountry labour mobility. mobility is not the sole answer, though. after all, employment will rise once firms are willing to hire. and they will do so if conditions are favourable. while policy - makers cannot interfere with employers ’ decisions, they can certainly provide the right setting and eliminate barriers to more efficient labour markets. euro area countries simply need to achieve the labour market flexibility that is compatible with membership of a monetary union. traditionally, policy - makers have focused on passive labour market policies, such as unemployment benefits that are de - linked from incentives to find a job. in my view, such policies should be complemented by more active policies, such as job - search assistance and targeted productivity - enhancing training measures to foster employability. to ensure sustainable economic development, reforms are necessary and beneficial for countries that are currently facing high unemployment rates. countries with more rapidly ageing populations also need to prepare, as they might soon face bottlenecks in labour supply. some of these countries are already confronted with skills shortages.

yves mersch : tackling unemployment in europe – increasing mobility, enhancing flexibility, optimising education keynote speech by mr yves mersch, member of the executive board of the european central bank, at the university of luxembourg, luxembourg, 26 september 2014. * * * ladies and gentlemen, first of all : congratulations to all doctoral students, whose graduation we are celebrating today! i am confident that you have a bright future ahead of you, as you stand well prepared to enter the labour market and to find jobs that match your skills – be it in academia, in the private or public sectors, here in luxembourg or elsewhere. holding the relevant qualification is a precondition for receiving a suitable job offer. however, it might not always be enough to secure a job. in several european countries, prospects are rather dismal, especially for young people. i am aware that unemployment may not be the most obvious challenge to talk to you about on such a celebratory occasion. it is, however, a major concern for the euro area. and i am convinced that well - educated people like you can really make a difference. high unemployment in the euro area – merely a temporary phenomenon? temporary rises in unemployment rates are typical of cyclical downswings. such cyclical increases in unemployment are distressing for those affected and can have dire consequences, but they tend to reflect a transitory downturn in labour demand and do not necessarily have a strong structural component. firms that are uncertain about the strength of the recovery are unlikely to invest or to rehire workers. at low interest rate levels and high labour market rigidities, firms tend to favour capital intensive investments over hiring. yet, developments during the second recessionary episode in europe differ from those observed at the beginning of the crisis. during the great recession, unemployment rose, as there was a shortage of vacancies. however, during the second recessionary dip, unemployment increased, although aggregate vacancy rates remained close to long - term averages. in addition, the second recessionary period led not only to extensive, but also to very persistent job losses in some euro area economies. the proportion of people in long - term unemployment rose substantially. this is particularly worrisome, as it reduces the chances that they will be rehired : if workers are unemployed for a long period of time, their skills might simply erode. long spells of unemployment may thus easily turn into structural unemployment. indeed, the mere fact that firms are willing to hire