September 23, 2022 09:43 GMT
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Despite deteriorating demand and slowing output, employment indicators remained robust underpinned by service sector employment. However, Germany, the euro area aggregate and the UK signalled the onset of a cooling labour market.
- Slowing hires reflect uncertainty about persistent inflation and the health of the greater economy. A robust labour market is a key supporting factor for resilience against large rate hikes.
- Germany saw employment growth slow to a February 2021 Omicron low.
- The eurozone aggregate experienced largely unchanged employment growth, remaining subdued at the August 17-month slowdown.
- The UK again saw solid employment growth expansion, however, the pace was also in line with 17-month lows of August. Strength was underpinned by the services sector and labour shortages were cited.
- France was a key outlier, recording strong employment growth as job creation rates were the highest in three months. A disparity between service and manufacturing job growth was highlighted, the latter being substantially softer.
- The September flash PMIs were another difficult set of data for central bankers, underlining growth slowing sharply but price pressures picking up again.