Economic outlook quarterly_graphs_June 2025 – V2_Fig 7 – Unemployment

As the labour force grows at a more measured pace, the EU unemployment rate has declined steadily, falling from 6.1 % in 2023 to 5.9 % in 2024 and reaching a record low of 5.8 % in the first quarter of this year. Projections indicate a further decline to 5.7 % by 2026. Employment growth has been particularly robust in the private services sector, which has emerged as the leading driver of job creation.
Tight labour markets, coupled with rising productivity, are expected to sustain strong wage growth. Across the EU, real wages are anticipated to fully recover the purchasing power lost since mid-2021. However, in some Member States, the rebound in real wages remains uneven, with recovery still trailing behind.