Eurozone Employment Inches Up as Expected

The number of employed persons in the Euro Area grew by 0.1% from the previous quarter to 176.577 million in the second quarter of 2026, the same pace as the first quarter, and aligned with market expectations, according to a first estimate. It was the bloc's 21st consecutive quarter of employment growth, extending the slow but consistent trend of increasing jobs in the European labor market, even though high energy prices and sluggish productivity led economic headwinds in the period. Job growth remained sharp in Spain (0.5% vs 0.3% in Q1) while net employment for a third period in France. Meanwhile, employment fell for a fifth straight quarter in Germany (-0.1% vs -0.1%). From the previous year, employment growth in the Eurozone was unchanged at 0.5%.

The number of employed persons in the Euro Area grew by 0.1% from the previous quarter to 176.308 million in the first quarter of 2026, slowing from the 0.2% increase in the earlier quarter and aligned with both market expectations and the flash 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, even though high energy prices and sluggish productivity drove the Eurozone's GDP to contract in the period. Job growth remained high in Italy (0.4% vs 0.4% in Q4) and Spain (0.3% vs 0.8%), but stalled in France (from another stall in Q4) and 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 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.