Central Banks
Euro Zone’s Cooling Jobs Market Feeds Calls for Faster ECB Cuts
- Some officials fear a sudden deterioration with big job losses
- Policymakers are likely to reduce borrowing costs this week
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Cracks are finally appearing in the euro zone’s labor market after years of unexpected resilience — spurring the European Central Bank to lower interest rates more speedily.
Despite still record-low joblessness following the inflation shock and a struggling economy, policymakers see signs of a shift that’s helped persuade them to back another reduction in borrowing costs this week.