Labour market recovery stalls

While the euro-zone economy has continued to weather the ongoing Greek crisis reasonably well, one potentially worrying recent development is the apparent slowdown in the labour market recovery. Not only did unemployment rise for the first time in nine months in June, but survey measures of employment intentions have also softened. While these developments might prove temporary, further signs of deterioration in the labour market would cast additional doubts over the strength and sustainability of the broader economic recovery in the region.