Eurozone Employment Grows as Expected

The number of employed persons in the Euro Area grew by 0.1% from the previous quarter to 176.412 million in the first quarter of 2026, slowing from the 0.2% increase in the earlier quarter and aligned with market expectations, according to a preliminary estimate. It was the bloc's 20th consecutive quarter of employment growth, extending the slow but consistent trend of increasing jobs in the European labor market, despite concerns that higher energy prices would trigger job cuts for major employers in the last month of the quarter. Job growth remained high in Spain (0.3% vs 0.8% in Q4), but fell for a third quarter in Germany )-0.1% vs -0.1%). From the previous year, employment levels grew 0.5% in the first quarter, the least since the Covid pandemic in 2021.

The number of employed persons in the Euro Area rose by 0.2% from the previous quarter to 172.6 million in the final quarter of 2025, confirming the preliminary estimate, to maintain the growth rate from the previous period and beat the initial market expectations of a 0.1% expansion. It was the bloc's 19th consecutive period of employment growth, extending the slow but consistent trend of increasing jobs in the European labor market, despite concerns that a stronger euro would reduce orders for major employers. Among the Eurozone's largest economies, job growth remained sharp in Spain (0.8% vs 0.7% in Q3) and Italy (0.3% vs 0.2%), offsetting a second month of contraction for Germany (-0.1% vs -0.1%). Germany remained without a significant increase in employment growth for the 10th straight quarter.

The number of employed persons in the Euro Area rose by 0.2% from the previous quarter to 176.13 million in the final quarter of 2025, ahead of the market expectations of a 0.1% increase, according to a preliminary estimate. It was the bloc's 19th consecutive period of employment growth, extending the slow but consistent trend of increasing jobs in the European labor market, despite concerns that a stronger euro would reduce orders for major employers. Among the Eurozone's largest economies, job growth remained sharp in Spain (0.8% vs 0.7% in Q3) offsetting a second month of contraction for Germany (-0.1% vs -0.1%). Germany remained without a significant increase in employment growth for the 10th straight quarter.