The research released by the European Central Bank on Monday shows that the unusually strong resilience of the Eurozone labor market is unlikely to continue, as the one-off factors driving its strength are diminishing, although there are no signs of a sharp weakening in the short term. The unemployment rate in the Eurozone is at a historic low of 6.3%, but the Eurozone economy has been stagnant over the past year. The European Central Bank stated that employment growth typically averages about half the growth rate of real GDP, but since 2022, employment growth has actually exceeded GDP growth. The Bank noted, "Although corporate revenues are declining, rising profit margins allow companies to retain employees longer than usual." However, real wages are currently rising and catching up with historical trends, while energy prices, a key cost input, are stabilizing, thus reducing the disconnection between output and employment. The Central Bank indicated that companies' ability or willingness to retain employees is slowly diminishing, but there won't be a significant drop in the future. The research states, "The unemployment rate is expected to remain low in the coming quarters. Overall, survey data indicate that the labor market will be relatively stable in the future."
欧洲央行研究:欧元区劳动力市场的异常强劲走势可能已经结束,但不会急剧减弱
European Central Bank research: The unusually strong trend of the labor market in the Eurozone may have ended, but it will not weaken sharply.
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