Europe’s Lowest Unemployment

Unemployment in Europe drops to lowest level ever

Unemployment in the euro countries has fallen again to the lowest level ever. In November, 6.4 percent of the working population was unemployed, compared to 6.5 percent a month earlier. What is special is that this is happening at a time when the economy is slowing down.

Only in June 2023 was the unemployment rate in the euro countries so low.

The number of unemployed fell by 99,000 in November compared to October, according to the latest figures from the European statistical agency Eurostat. Compared to a year earlier, there are even 282,000 fewer unemployed people.

In the Netherlands, unemployment also fell in November. At 3.5 percent, the unemployment rate was even lower.

Remarkably, unemployment decreases when the euro countries experience economic headwinds. In the third quarter of 2023, the economy of the euro countries shrank by 0.1 percent compared to the second quarter.

The economies in the Netherlands and Germany also shrank in the third quarter. Another contraction is expected in Europe in the last quarter.

The European labor market is also tight

The fact that the economic headwind is not yet leading to additional unemployment is because the deterioration of the economy is mainly coming from industrial sectors. Not many people work there. People in Europe are also gradually working shorter working weeks. As a result, more people are needed for the same work.

Just like in the Netherlands, the labor market is also tight in Europe. The vacancy rate, which measures the number of vacancies compared to the total supply of work, was very high in the third quarter of 2023 at 2.9 percent. That is why experts believe that unemployment in Europe will not rise again anytime soon.