Economy in Focus #4 – Employment remains strong in Europe
In the 4th edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, discusses Europe’s resilient labour market amidst economic challenges. The report highlights stable employment, falling real wages, and rising consumer confidence. Published in April 2023.
Employment rates remain stable across Europe
Despite economic turbulence, employment rates across Europe continue to rise, with 75% of working-age Europeans employed. The labour market shows resilience, even as inflation challenges wage growth.
Real wages fall as inflation outpaces earnings
In 2022, inflation grew faster than wages, reducing the purchasing power of most Europeans. Despite governments and companies increasing wages, real wages have fallen, putting pressure on consumers.
Consumer confidence shows signs of recovery
After reaching record lows at the end of 2022, consumer confidence has begun to rebound. While still below long-term averages, optimism is growing as energy prices decline and economic outlooks improve.
Comment from Intrum's Senior Economist:
"The European labour market has shown remarkable resilience, but the inflation crisis continues to challenge real wages. With consumer confidence improving, there is hope for recovery, though uncertainties remain"
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