Where is the largest surplus of labor in Europe?

In the second quarter of 2025, more than 26 million Europeans were unemployed, underemployed, or not fully engaged in the labor market, which Eurostat defines as a surplus of labor. The term includes the unemployed, part-time workers who want more hours, individuals available for work but not currently seeking employment, and those who are looking for work but are not immediately available.

According to seasonally adjusted data from Eurostat, in Q2 2025, there were 198 million employed persons aged 20 to 64 in the European Union. The employment rate reached 76.2 percent, a slight increase compared to the first quarter of 2025 when it was 76.1 percent. The total surplus of labor amounted to 23.7 million or 10.9 percent of the expanded labor force, which remained stable compared to the previous quarter. There were 12.2 million unemployed, corresponding to a rate of 5.8 percent, while underemployment among part-time workers was 2.3 percent. Individuals available for work but not seeking employment accounted for 2.2 percent, while those seeking work but not available made up 0.8 percent.

Significant differences among countries

At the country level, the surplus of labor shows significant differences. The lowest rates are recorded by Poland at 5.1 percent, Slovenia at 5.3 percent, Malta at 5.4 percent, and Bulgaria at 5.5 percent. In contrast, Turkey stands out with 25.8 percent, while among the leading countries with the highest surplus of labor are Finland at 19.5 percent, Sweden at 18.8 percent, and Spain at 18.6 percent.

High surpluses of labor are also recorded in Bosnia and Herzegovina at 17.1 percent, France at 15.4 percent, and Italy at 15 percent. Among the four largest economies in the EU, Germany has the lowest surplus of labor at 7.8 percent, while France, Italy, and Spain record rates above 15 percent.

In Croatia, the surplus of labor in Q2 2025 increased by 0.3 percentage points compared to the previous quarter, which is among the largest quarterly increases in the European Union. The unemployment rate remained stable, and including hidden forms of unemployment, Croatia is in the middle range of the EU in terms of labor utilization.

Changes in the surplus of labor between Q1 and Q2 2025 were recorded in 11 EU countries. The largest increase of 0.4 percentage points was recorded by Italy, while Denmark, France, Croatia, and Lithuania had an increase of 0.3 percentage points. A stable situation was recorded in the Czech Republic, Luxembourg, Malta, Poland, and Slovakia, while the largest declines were recorded by Latvia (-1.0 pp), Estonia (-0.8 pp), Spain, and Slovenia (-0.6 pp).

Looking at employment by gender, the employment rate for women in the EU increased by 0.1 percentage points, while the employment of men remained stable. The largest increase in women’s employment was recorded by Latvia (+2.0 pp), followed by Belgium (+1.4 pp) and Luxembourg (+0.9 pp), while the largest decreases were in Hungary (-0.7 pp) and in Ireland, Malta, and Romania (-0.3 pp). The largest increase in men’s employment was recorded by Estonia (+1.0 pp), Cyprus (+0.7 pp), and Malta (+0.6 pp), while decreases were noted in Slovenia (-0.8 pp), Italy, and Luxembourg (-0.4 pp).

According to Dorothea Schmidt-Klau from the International Labour Organization (ILO), the differences among countries in the surplus of labor are conditioned by decades-long high unemployment rates that discourage people from seeking jobs, a lack of support systems such as availability of childcare, limited social norms, a lack of quality jobs, and a mismatch between workers’ skills and employers’ demands.

Expressed underemployment

Underemployment among part-time workers is particularly pronounced in the Netherlands (5.1%), Finland (4.8%), and Ireland (4.7%), while Switzerland, Turkey, and Spain recorded rates above four percent. Individuals available for work but not currently seeking employment are particularly represented in Turkey (12.3%), Italy (6.6%), and Sweden (4.4%). The share of unemployed in the total surplus of labor is highest in the Netherlands and Turkey (33% each) and in Ireland and Switzerland (36%).

These data clearly show that official unemployment rates do not fully reflect the state of the labor market. Hidden unemployment and underemployment continue to pose a significant challenge in most European countries, including Croatia, and highlight the need for systematic measures to increase labor engagement and better align the supply of labor with the needs of the economy.