The employment rate in the European Union reached a record level in the last quarter of 2024, while unemployment fell to a historic low, according to the latest data from the Organisation for Economic Co-operation and Development (OECD). These are the strongest indicators in the European labor market in nearly two decades.
According to the OECD, employment in the EU among individuals aged 15 to 64 was 70.9 percent in the fourth quarter of last year, the highest level since 2005. At the same time, in February 2025, the unemployment rate fell to just 5.7 percent, the lowest level since January 2000.
Peak Employment
Eight EU member states, including Germany, the Czech Republic, Portugal, Slovakia, Belgium, Spain, Greece, and Turkey, recorded record levels of employment in the fourth quarter of 2024. Although in some cases only marginal increases were noted, the trend indicates a strong recovery and growth in the labor market.
—
—
The Netherlands leads with the highest employment rate in the EU at 82.3 percent, while Italy, at 62.2 percent, ranks at the bottom among the 24 analyzed members. When including non-EU countries, Iceland leads with 85.6 percent, while Turkey has the lowest level at 55.2 percent employed.
Among the five largest European economies, Germany stands out as a leader with 77.6 percent employed, followed by the United Kingdom at 75 percent, while France (68.9 percent), Spain (66.3 percent), and Italy (62.2 percent) lag behind the EU and OECD averages.
It is worth noting that, according to Eurostat’s methodology, which considers the age group of 20 to 64 years, the number of countries with more than 80 percent employed could further increase.
Record Low Unemployment
Despite the historically low unemployment rate in the EU, differences among countries remain pronounced. Poland records the lowest unemployment rate at 2.6 percent, while Spain is the only member with a double-digit rate of 10.4 percent.
Among the Nordic countries, surprisingly high unemployment rates were recorded in Finland (9.2 percent) and Sweden (8.9 percent), placing them alongside Spain at the top of the rankings.
On the other hand, Germany reaffirms its stability with just 3.5 percent unemployed, the best result among major European economies. In the United Kingdom, unemployment stood at 4.4 percent, while France (7.4 percent) and Italy (5.9 percent) remain above the EU average.
The OECD emphasizes that the increase in employment and the decrease in unemployment are the result of increased labor force participation, particularly evident in Iceland (+1.6 percentage points) and Greece (+1.5 points).
OECD data indicate a stable and positive trend in the European labor market, with record employment figures and historically low unemployment. However, challenges such as disparities among member states and relatively low employment rates in southern parts of Europe still require additional structural reforms and labor market stimulation.
