The eurozone labour market has shown continued resilience, despite the region’s underperforming economy in the final quarter of 2024. In January 2025, the European Union’s unemployment rate stood at 5.8%, while the eurozone’s rate was slightly higher at 6.2%, according to Eurostat data. Both figures have remained at historic lows for four consecutive months, signaling a stable labour market amid economic challenges.
The eurozone economy showed little growth in the three months leading up to December 31, with its GDP holding steady compared to the previous quarter. However, the number of unemployed individuals across the EU and eurozone continued to decrease. In the EU, unemployment fell by 8,000, with a total of 12.824 million people out of work. Meanwhile, the eurozone saw a slight drop in jobless numbers by 42,000, bringing the total unemployed to 10.765 million.
Youth unemployment remained a concern, with 14.6% of people under 25 in the EU unemployed, equating to roughly 2.9 million young people without work. In the eurozone, the youth unemployment rate decreased slightly to 14.1%, down from 14.2% in the previous month.
Gender-based unemployment rates remained consistent, with 5.6% of men and 6% of women in the EU without jobs. In the eurozone, the unemployment rate for men was 6%, while for women it stood at 6.4%.
Notable trends in specific countries include Spain, which, despite having the highest unemployment rate in the EU, saw a slight improvement. The rate dropped from 10.6% in December 2024 to 10.4% in January 2025. Further positive signs were seen in February when Spain’s Ministry of Labour and Social Economy reported a reduction of 5,994 unemployed people, bringing the total number to 2.59 million—its lowest level for February in 17 years.
Conversely, the Czech Republic and Poland reported some of the lowest unemployment rates in Europe, both standing at 2.6% in January 2025.
However, as the eurozone economy continues to struggle, analysts are warning that unemployment could rise in the near future. The February PMIs from S&P Global revealed that manufacturing companies have been cutting jobs at the fastest pace in over four years. Additionally, the threat of US trade tariffs on the EU’s economy could further impact the job market.
Looking ahead, the European Commission’s latest forecast suggests that the unemployment rate in the EU will rise slightly to 5.9% in 2025, with the eurozone’s rate reaching 6.3%. This rate remains a key factor influencing the European Central Bank’s monetary policy, with expectations that the ECB will reduce interest rates during its upcoming meeting this Thursday.
