Europe's labor market fell in the third quarter of this year, suggesting a continued decline in inflation pressures, which could justify further interest rate cuts.
The rise in labor costs in the Eurozone slowed to 4.6 percent in the third quarter, compared to 5.2 percent in the previous quarter. According to Eurostat data, the job vacancy rate fell to 2.5 percent from 2.6 percent, a continuous decline for most of the past two years.
Tight labor market pressures are largely constrained by the ECB's policy on interest rate cuts, fearing that a rapid wage increase would raise the costs of the domestic services sector. However, the economy began to slow, as workers began to ease their wage demands in order to maintain their jobs.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
