Central Bank Governor addresses the European Savings and Retail Banking Group

On Thursday, the Governor of the Central Bank of Malta, Professor Edward Scicluna, delivered a presentation on the key trends and structural changes observed in the labour markets of advanced economies after the pandemic. The conference was organized within the framework of ESBG Spotlight, a series of events organized by the European Savings and Retail Banking Group (ESBG). ESBG is an association of 23 members from 18 European countries and it represents the interests of over 800 banks. Together, ESBG members manage assets worth €5,700 billion, serve 162 million Europeans and employ nearly 660,000 people.

Governor Scicluna began his presentation by emphasizing the multidimensional nature of the crisis and its deep and transformative effects on both the economy and society. After introducing the audience to some key concepts and tools commonly used by economists to analyse labour supply, he then presented a general overview of the current labour markets’ situation in some advanced economies.

During his intervention, the Governor mentioned some unusual trends and disruptions observed in the labour markets, demonstrating the need to go beyond what standard tools indicate. He also argued that the pandemic was a “significant shock that will leave a major impact on attitudes towards work. Thus, economists may need to rethink their toolkit”. He concluded his intervention by highlighting the uncertainty surrounding the long-term effects of the pandemic on labour markets and reflecting on some dimensions in which permanent changes are more likely to occur after the pandemic. At the moment, “we have more questions than answers” he stated.

The session was moderated by Sebastian Stodulka (ESBG Head of Regulatory Affairs) and included a round of questions in which participants had the opportunity to interact with the Governor.