European Central Bank President Christine Lagarde stated that Europe’s labor market has withstood a once-in-a-generation inflation shock and aggressive interest-rate hikes, experiencing 4.1% growth between 2021 and mid-2025. The expansion is nearly as large as the economy and twice as much as expected. Lagarde attributed this resilience to both global tailwinds and domestic strengths.
Source: https://www.bloomberg.com/news/articles/2025-08-23/ecb-s-lagarde-says-labor-market-has-weathered-recent-shocks-well