Euro-area labour market: Resilience amid challenges – Standard Chartered
|Standard Chartered's Christopher Graham discusses the resilience of the Euro-area labour market despite recent economic shocks. The report highlights that employment growth and vacancies indicate a more balanced labour market, which may lead to lower wage growth and inflation. While weak productivity growth remains a concern, the likelihood of a major labour-market shock is deemed remote.
Resilience and challenges in Euro-area
"The euro-area labour market has shown impressive resilience since the COVID-19 pandemic. Despite various economic shocks and increasing competition from abroad, unemployment is almost a full percentage point below its pre-COVID trough."
"However, labour-market resilience has compounded Europe’s long-running productivity problem. Recent data suggest a more balanced labour market in recent quarters: employment growth is slowing, the vacancy rate is now back below the pre-COVID peak and wage growth is moderating."
"We think a major loosening of the euro-area labour market is unlikely, but if trade pressures squeeze European firms’ profit margins this could limit incentives to boost employment and hoard labour to the degree that we have observed since COVID."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.