ECB Sees Labor Market Normalizing After Puzzling Post-Covid Boom

The euro-zone jobs market will start conforming to historic norms as the effects of a startling post-pandemic boom dissipate, according to the European Central Bank.

In a report published Monday, researchers attributed much of the recent strength to cyclical factors like falling real wages and quicker inflation. That made it cheaper for firms to retain staff, despite a sluggish economy.