Europe’s labor market has proved surprisingly resilient in the face of a once-in-a-generation inflation shock and aggressive interest-rate hikes, according to European Central Bank President Christine Lagarde.
Employment expanded by 4.1% between the end of 2021 and mid-2025, nearly as much as the economy and roughly twice as much as an established economic rule would suggest, Lagarde said Saturday in Jackson Hole, Wyoming, where she’s attending the Federal Reserve’s annual symposium. She added that both global tailwinds and domestic strengths helped deliver such an outcome.