Europe has an enormous pool of unemployed people. However, companies in Europe are reluctant to employ more people due to the region’s inflexible and over-regulated labour market. Fierce competition from low-wage countries such as China has aggravated the problem. Nonetheless, this competition has also given Europe a greater sense of urgency to find a solution to its unemployment problem. This month in Economic View, we look at how Europe – and Germany specifically – is tackling the problem.