Labour markets feeling the squeeze

With unemployment at its lowest level for two decades and vacancies historically high, labour markets in industrialised countries continue to remain tight, according to the OECDs latest Economic Outlook.

Yet, despite increased demand for labour, workers are seeing wage growth eroded in real terms as countries battle high inflation. The OECD expects that inflation will remain high also next year and said that ‘it is probable that many wage demands in 2023-24 will be considerably higher than previously anticipated’.

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