While employment growth has accelerated, allowing unemployment to fall significantly since 2005, many low-skilled workers are still unemployed and the duration of unemployment spells is still long. The introduction of an in-work benefit for workers in low-income households, subject to a minimum of hours worked, could lower barriers to higher employment which result from a relatively high tax wedge on low-skill workers, as would the elimination of poverty traps in the pension system. Measures to improve mobility of workers across regions, notably housing policy reform, would lower long unemployment durations, as would the provision of more training to the unemployed. Impediments to higher labour market participation of young women and older workers need to be removed. A bibliography is included. (Contains 34 footnotes, 5 figures, and 2 boxes.) [This paper is based largely on material from the "OECD Economic Survey of the Slovak Republic" published in April 2007 under the authority of the Economic and Development Review Committee (EDRC).]