Euro-zone labour market recovery remained very slow

Euro-zone data released this morning revealed that the labour market recovery remained very slow. Employment rose by just 0.1% q/q in Q4 last year, leaving the annual growth rate at a modest 0.9%.

With previous data showing that the unemployment rate edged down to a still-high 11.2% in Jan and survey measures of hiring pointing to continued slow employment growth, the labour market recovery is not about to accelerate. 

Capital Economics notes in a report on Tuesday:

• Euro-zone employment data will have done little to support pay growth in the region and we expect data released on Thursday to reveal that hourly labour costs rose by just 1% or so on the year. 
  
  
• Euro-zone consumer spending growth will remain relatively subdued despite a boost from lower oil prices.