Is the labour market normalising in the United States and the euro zone?

A labour market normalisation is needed if inflation is to decline in the long term. For such a normalisation to occur, recruitment difficulties , the ratio of job vacancies to job seekers and quit rates would all have to return to normal . We look at these different variables in the case of the United States and the euro zone. We find that: In the United States, labour market tightness has returned to normal (to its pre-2020 state); In the euro zone, the labour market remains very tight. This explains why wages and unit labour costs are growing much faster in the euro zone than in the United States.