The European economy and labour markets are experiencing signs of recovery from the prolonged downturn. However, there is no reason to celebrate prematurely. While economic output and employment have both started to recover in recent quarters, they remain below the pre-crisis levels and the foundations of further growth remain fragile. Moreover, the employment and social impacts of the crisis will take years to redress, even under the most optimistic scenarios. At the same time, some Member States weathered the crisis better than others and experience a stronger recovery, also in terms of employment.