The employment situation in the European Union (EU) continued to improve in 2005 despite a temporary slowdown in economic growth, according to a report published by the European Commission on Monday.

Unemployment in the EU fell by almost half a percentage point to 8.7 percent in 2005 from 9.1 percent in the previous year while employment growth almost doubled to 0.9 percent.

However, the EU continues to under-perform both in terms of employment and productivity growth in relation to EU targets. A stronger drive to implement comprehensive reforms is a matter of urgency, said the commission, the executive body of the EU.

"Despite the rise in the employment rates of women and older workers, progress toward the overall employment rate target of 70 percent is simply not fast enough," said Vladimir Spidla, EU commissioner for employment, social affairs and equal opportunities.

He said more efforts are needed in most member states.