The number of employed persons in the Euro area increased by 0.1% from the previous quarter to 171.25 million in the final three months of 2024, marking a slowdown from the 0.2% rise in the previous period but remaining broadly in line with the flash estimate and initial market expectations.
Eurozone employment continues to grow
This marked the 15th consecutive quarter of employment growth, reinforcing the European Central Bank’s (ECB) stance that the labor market remains tight, even as broader economic activity showed signs of cooling at the turn of the year.
Among the Eurozone’s major economies, employment growth was strongest in Spain (0.9%), reflecting a resilient labor market supported by gains in the services and tourism sectors. The Netherlands also saw a 0.3% increase in employment, maintaining a steady upward trend. In contrast, Italy experienced a slight contraction (-0.1%), while employment levels in France and Germany remained unchanged, suggesting that Europe’s two largest economies may be facing headwinds in job creation amid lingering uncertainties over economic growth and trade policies.
Eurozone employment also grew YoY
On a year-over-year basis, Eurozone employment grew by 0.7%, slightly revised upward from the preliminary estimate of 0.6%. This continued expansion signals that, despite slowing momentum, the region’s labor market remains relatively resilient in the face of geopolitical risks, trade tensions, and shifting monetary policy expectations. Moving forward, policymakers will closely watch labor market dynamics as they assess the impact of high interest rates and fiscal reforms on economic growth and employment trends across the bloc.
