Euro area unemployment in November matched its record low, despite concerns of a potential recession in the region last year. The jobless rate fell to 6.4% from 6.5% in October, which equates to about 11 million unemployed individuals in the area. This suggests why the European Central Bank is in no rush to cut interest rates. As employers struggle to find staff, wages increase, creating potential risks for inflation. A new labor hoarding indicator developed by the European Commission remained steady in December, reflecting this trend. Therefore, ECB policymakers are unlikely to reduce borrowing costs until mid-year, contrary to investors’ current expectations.