According to Jinshi, HSBC senior economist Fabio Balboni said that the eurozone labor market is showing real tightness, which may be conducive to the recovery of consumption in the region in the coming quarters, but it is not good news for the European Central Bank. As wages continue to rise, the growth of unit labor costs has been pushed to a record high, exacerbating potential inflationary pressures. There seems to be little labor reserve, which means that wages may accelerate when economic activity picks up again. Unless companies are willing to bear the financial impact by hiring more employees, inflationary pressures will continue to exist, which is one reason why the European Central Bank will postpone cutting interest rates until June.