Euro area: Expect strong employment growth in Q1 – Danske Bank

Research Team at Danske Bank, suggests that in the euro area, the employment data for Q1 16 are due for release today and they expect strong employment growth in Q1, in line with the solid GDP growth in Q1.

Key Quotes

“We expect the robust employment growth to continue throughout 2016 following the trend in 2015 when employment growth showed strength despite moderate GDP growth. Strong employment growth despite modest GDP growth reflects the low potential growth. In the euro area, productivity is still significantly below the pre-crisis level and the shrinking labour force is among the constraining factors for potential growth.”