Job creation has lowered unemployment, but the Belgian labour market still faces many challenges. Employment rates … some aspects of employment protection legislation, such as those related to collective dismissals, and the wage formation …

. Moreover, as the recovery in output has been weak relative to the recovery in employment, labour productivity and wage growth … policies are highly effective in limiting employment declines during economic downturns and preventing that cyclical increases … activation regimes. Overly strict employment protection for regular workers reduces resilience by promoting the use of temporary …