Chancellor Angela Merkel of Germany says Europe has lost its competitiveness.
The issue of unemployment in the euro zone is on the minds of many and the latest job figures are a stark reminder of the jobs crisis in the continent.
The number of people employed in the euro zone fell by 0.5% in the first three months of the year, compared with the December quarter.
Ms Merkel said the region needs to work together to tackle impending problems like youth unemployment.
