One year after the outbreak of the COVID‑19 crisis, the future looks certainly brighter but it is not yet time to withdraw policy support for people and companies. Even if the headline labour market figures in many countries look better than in Q2 2020, millions of workers are still on job retention schemes and millions of others are unemployed or underemployed. In the coming months, while countries prepare for the implementation of their recovery plans, it is essential to continue supporting families and companies still deeply affected by the crisis, while providing the right incentives for job creation and resuming work. Without these measures, the recovery would start from an even worse economic and social starting point. The short-term costs are high but they are much lower than the costs of mass bankruptcies, layoffs and a depressed economy and labour market. Furthermore, the short-term costs can be reduced by enhancing the targeting of support to the most vulnerable sectors, companies and households, while fostering start-ups and job creation.