But high social security benefits impede job creation.
Europe is on the move again, with activity across the Continent rising sharply in the first half of the year. An improvement in business confidence and orders indicates that recovery should continue, and most forecasters are looking for European growth to average 2% this year before accelerating to 2.5% in 1995. However, any such advance is not expected to make much impact on unemployment, which is forecast to rise further as companies use the increase in demand to take up the slack created by the recession, rather than to create new jobs. Pressures on productivity remain strong, particularly in Germany.