The sheer volume of hiring may have  -3taxed the capacity of the market to bring workers and jobs together. The Delta and Omicron variants complicated hiring, and the strong financial position of households may have allowed some to be more selective in their job search. Over time, we might expect these factors to fade, reducing pressure in the job market.
On the domestic side, investment should be supported by the global environment, the very favourable financing conditions in the euro area, solid profits and greater corporate efficiency gained through business restructuring. Finally, there is scope for private consumption to strengthen, in particular if uncertainties surrounding the extent and pace of the implementation of structural reforms are reduced.