ECB's Mersch says productivity drive in euro zone has cost jobs
[FRANKFURT] The drive for more productivity in the eurozone has come through cutting the workforce, a European Central Bank policy setter said on Thursday, warning that such job-shedding could become entrenched.
"Much of the (meagre) productivity growth seen in the euro area has come through labour shedding rather than from strong value added growth," said Yves Mersch, who sits on the ECB's Executive Board.
"And if those displaced don't have the right skills to find another job, structural unemployment is likely to increase further."
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Central banks will probably only cut half as much as they hiked
US consumer sentiment falls as inflation expectations climb
HSBC wins £1.3 billion suit over Disney film finance scandal
WTO countries to reboot dispute reform negotiations
Fed’s preferred core inflation gauge rose at a brisk pace in March
Thames water crisis risks £100 billion UK investment plan