current
Resilient Income, Employment
Despite COVID-19 and the cost-of-living crisis, average household incomes and employment rates have remained resilient due to government interventions.
Timeframe
near-term
Subcategories
Impact areas
Detailed Analysis
Government interventions successfully mitigated the economic fallout from the pandemic and cost-of-living crisis. These measures, aimed at protecting households and businesses, have been instrumental in maintaining average disposable household incomes and boosting employment rates. While there were initial drops in employment during the early stages of the pandemic, recovery has been robust, with employment rates reaching historical highs by early 2024.
Context Signals
OECD unemployment rate reached a record low of 4.9% in December 2023
Quarterly employment rates remained at record historical values by Q1 2024
Real household gross disposable income per capita saw a sharp increase followed by a decline and subsequent recovery
Edge
The long-term impact of government interventions on public debt levels needs careful monitoring.
The resilience of the labor market may be tested by future economic shocks or automation.
Sustaining income levels in the face of inflation will require ongoing policy adjustments.
