Strong eurozone labour market to moderate next year

The eurozone’s labour market has outperformed expectations since the start of the pandemic, but current headwinds to economic growth are mounting and will adversely impact employment into 2023. A mix of domestic reopening tailwinds and looser travel restrictions will support employment growth in the first half of 2022 and helps underpin our GDP forecast for this year.

What you will learn:

• There has been a strong employment recovery, but this has been driven by higher public sector employment linked to temporary pandemic expenditure.
• The war in Ukraine presents downside risks for employment.
• Reassuringly, employment expectations across sectors have held relatively firm since the onset of the war but these movements can lag broader economic sentiment.