Labour markets continue to perform strongly, with many countries seeing historically high levels of employment and low levels of unemployment. Labour and skill shortages rose in many countries in the past decade, labour market tightness is easing it still remains above pre-COVID-19 levels in many countries. In fact, labour shortages are still pervasive in several economic activities, as firms face recruitment difficulties which hamper their capacity to satisfy existing demand, to expand production, and to innovate. This situation can tamper productivity growth, aggravate supply bottlenecks, and eventually contribute to inflationary pressures.
