The Labourers are Few
by AIB Treasury Economic Research Unit
- Strong inflows of Foreign Direct Investment (FDI) have been a key factor behind the extraordinary growth in output, exports and employment enjoyed by the Irish economy in the past couple of years.
- A clear headwind to Irish growth prospects, though, is the emerging capacity constraints in the economy.
- As a result, growth in the labour force is now slowing down.
- Another sign of tightness in the labour market is that the growth in employment is all in full-time jobs, which rose by over 4% in the past year, while part-time numbers remain largely static.
- In the US, labour market conditions have been very tight for quite some time.
- Inflation data will also feature in the Eurozone this week.
- In the UK, the only release of note will be Nationwide house price data.
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