Private payrolls increased a healthy 317,000 jobs in September, and the July and August payrolls were revised up by 169,000 jobs. Nevertheless, the numbers are concerning, given that as many as 8 million workers may have rolled off unemployment insurance programs in September. It is difficult to imagine that, going forward, these workers will continue to remain on the sidelines.
At the same time, upside risks to price stability over the medium term, in particular those stemming from second-round effects in price and wage setting, prevail. In this context, in order to avoid that the current high inflation rates become entrenched in expectations, it is of the essence that all relevant parties – price setters and social partners – meet their responsibilities.