The world has for decades seen a combination of strong growth in the global working age population and ever-more liberalised trade. The growing labour supply has dampened wage inflation, and mature economies have benefited through labour migration, cheap imports and relocation of production to lower labour-cost areas.
But the working-age population of mature economies is shrinking. And there are potential protectionist threats to free trade, which could impede trade flows and potentially make labour markets less regional or global, and more national, going forward.
Watch our latest Nordea On Your Mind webinar from Corporate & Investment Banking for an in-depth look at these trends, including a scenario where wage inflation could rise in the years ahead, potentially triggering a need for higher interest rates. Johan Trocmé and Kjetil Olsen from Nordea Research hold the discussion.
And don’t miss our two new in-depth reports on this theme:
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