MNI PODCAST: EU Firms Unlikely To Cut Jobs On Uncertainty

EXECUTIVE SUMMARY

• ECB economists Vasco Botelho and Laura Lebastard say firms are unlikely to shed workers unless confronted with materially weaker demand.
• Any change in uncertainty takes time to materialise.
• Lower demand is the main factor that affects labour hoarding decisions, alongside worker shortages.
• Labour hoarding in the eurozone has declined consistently over the past few years but remains above the levels seen before the pandemic and energy crisis shocks. 

Listen to the full episode here.