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Published as part of the ECB Economic Bulletin, Issue 1/2025. Extreme weather events like the devastating flash floods that hit Spain last October have substantial human, social and economic impacts. Climate change is making these types of event more commonplace and the trend is predicted to go on rising.
A recent ECB survey asked leading non-financial companies about the drivers of some key characteristics of the euro area labour market in recent years. These characteristics include an increased tendency for firms to cite recruitment difficulties; high and growing employment despite stagnating economic activity (and hence reduced labour productivity); a notable fall in average hours worked; and an increase in remote working.
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