DM Labour-Market Recovery On Track, But Momentum Will Slow In 2022

•  Developed market (DM) unemployment will continue declining in 2022. However, this will occur at a slower pace than in 2021 owing to weaker growth momentum and the withdrawal of government support. 
• After peaking at 6.8% in 2020, DM aggregate unemployment has declined throughout 2021, largely due to DM governments’ ambitious employment support measures. Fitch expects that aggregate unemployment in developed markets will average 5.8% in 2021, and it will continue edging down to 5.3% in 2022, before reaching its pre-pandemic level of 4.9% in 2023. 
• A less dynamic pace of economic expansion and the expiration of most government-sponsored employment retention schemes will be the main factors behind more moderate employment gains next year.

 (Source: Fitch Solutions)