Research Briefing | Apr 5, 2022

Europe: City employment growth will revert to pre-crisis norms

City employment growth will revert to pre-crisis norms

We forecast that as the distortions from the pandemic subside, employment growth across Europe’s major cities will generally outperform national economies in the years to 2026. Evidence that city population dynamics are reverting to pre-crisis trends, combined with a favourable sectoral setting, underpins this.

What you will learn:

  • The beginning of 2022 has seen several downside risks emerge, particularly with respect to labour supply shortages and the Russia-Ukraine war.
  • While this has resulted in a downgrade to our near-term national employment outlook, growth in the major cities should generally be more resilient.
  • Our medium-term outlook for the best performing cities has not been dramatically altered either by recent events or by the pandemic.

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