Expect The Eurozone Labour Market To Remain Tight Despite Recession

Summary

• This report finds that tight labour markets ahead of a recession cause employment to fall less than normal.
• So, given that we expect a shallow recession in the eurozone, labour shortages are not going to disappear in all countries and sectors.
• Modest upward pressure on wages is set to stay.

Stadtratte

By Bert Colijn, Senior Economist, Eurozone & Joanna Konings, Senior Economist, International Trade

The European Commission has joined the long list of organisations now expecting a recession to happen in the eurozone this winter. Only a few optimists seem