Some sectors will shrink, others will expand, creating risks of skill mismatch, and potentially adding to the skill premium through “skill-biased technological change”.9 The other is a faster and broader pace of reabsorption of current labour market slack.
The IMF, for example, expects the aggregate output gap in advanced economies to be already slightly positive in 2022, as GDP per capita this year is estimated to expand at its fastest rate since the 1980s.