A structural transformation is investing labour in Europe, accelerated by the crisis started in 2008. Job destruction is dominating employment trends in most EU countries and deep changes are taking place in labour relations, labour market institutions and wage regimes.
The focus of this paper is on three issues. First,an overview is offered of the change taking place across EU countries at the level of industries in manufacturing and services. Second, the changes taking place in the structure of employment by professional groups are investigated, showing the factors that account for the evolution of skills. Third, the need for policies is argued, that are not limited to labour market conditions, but address production structures, especially in the countries hardest hit by the crisis.