Shrinking the cost of hiring workers and expanding cost effective active labor market policies can draw more workers into the workforce. The recovery is an opportune time to commit to reducing excessive protection for workers on regular contracts and overly generous financial disincentives for entering the labor market as these distortions keep unemployment too high for too long. To ensure that policymakers take action, the reform agenda should be based on benchmarks related to reform outcomes that are directly under the control of policymakers as this will improve transparency and accountability.