Amid continued economic, financial, and political turmoil, several European Union countries are seeing improvement in a crucial measure of competitiveness. According to a new Executive Action Report from The Conference Board, the cost of labor per unit of output has fallen significantly in a number of the hardest-hit economies, led by Ireland and Eastern Europe.

For the Euro Area, controlling unit labor cost (ULC)—defined as nominal labor compensation per unit of real output—may be key to redressing the competitive unbalance between core and periphery that has haunted a continent and fueled four years of recurring crisis.

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