In 2022, the European Union boasted a core working-age population of 259.2 million individuals aged between 20 and 64. Among this demographic, 53.5 million individuals were classified as economically inactive. This group encompasses students, retirees, individuals providing care for family members, volunteers, and those unable to work due to long-term illness or disability.
Within the core working-age population, there were 193.5 million individuals gainfully employed. Conversely, 12.3 million individuals were unemployed, actively seeking employment, and available for work.
Regional employment rates across NUTS level 2 regions varied significantly. The Finnish archipelago of Åland boasted the highest employment rate at 89.7%, while the southern Italian region of Sicilia reported the lowest at 46.2%.
Employment
Over the past few decades, a primary focus of the EU’s policy agenda has been the augmentation of workforce participation. This objective has been integral to the European employment strategy (EES) since its inception in 1997 and has been further integrated into the targets of the Lisbon and Europe 2020 strategies. Additionally, the employment rate serves as a key indicator in the social scoreboard, facilitating the monitoring of the European Pillar of Social Rights’ implementation.
The EU has set a target for employment rate: by 2030, a minimum of 78% of individuals aged 20–64 should be engaged in employment.
The employment rate signifies the proportion of employed individuals within a specific age group relative to the total population of the same age range. Prior to the emergence of the COVID-19 crisis, the EU experienced a steady increase in its employment rate among the working-age population (20–64 years), reaching 73.1% by 2019 after six consecutive years of growth. However, this trend abruptly halted in 2020 with a 0.9 percentage point decline. Encouragingly, by 2021, the EU’s employment rate rebounded to pre-pandemic levels, swiftly recovering all losses incurred during the initial phases of the crisis. This positive trajectory continued into 2022, witnessing an even more rapid increase of 1.5 percentage points, culminating in a historic high of 74.6%.
Regional disparities for employment rates
Diverse employment rates among regions within individual EU Member States were quite common. For instance, in many multi-regional eastern and Baltic Member States, the capital region typically boasted the highest employment rate. This trend was evident in countries like Bulgaria, Czechia, Croatia, Lithuania, Hungary, Poland, Romania, Slovenia, and Slovakia in 2022. Similarly, Denmark, Ireland, Greece, and Sweden followed this pattern. However, in several western Member States, such as Belgium and Austria, the capital region often exhibited one of the lowest regional employment rates.
Numerous EU Member States grappled with regional disparities in their labor markets, with some regions facing labor shortages while others endured persistently high unemployment rates. A population-weighted coefficient of variation serves as a metric for comparing these intra-regional discrepancies. Figure 1 demonstrates that in 2021, Italy recorded the highest regional disparities, with a coefficient of variation of 17.5%. Generally, Italy displayed a north–south division in its regions: the northern Provincia Autonoma di Bolzano/Bozen reported the highest employment rate (79.2%), while the southern island region of Sicilia had the lowest (46.2%).
Belgium (8.8%) and Spain (8.4%) exhibited the next highest coefficients of variation for employment rates. Belgium also displayed a north–south divide, with relatively higher rates in the northern regions of Vlaams Gewest and generally lower rates in Région wallonne. In Spain, higher employment rates were typically found in northern and eastern regions, while lower rates were more prevalent in southern and western regions. Conversely, the Netherlands and Denmark had the lowest regional disparities for employment rates, with coefficients of variation less than 2.0%.
Qualifications and skills
In recent years, several EU Member States have implemented labor laws aimed at liberalizing their job markets. These laws introduce various options for hiring employees, such as temporary, fixed-term, or zero hours contracts. However, this approach has created a distinction between permanent full-time workers and those with less secure employment arrangements. Typically, the latter category comprises young individuals and/or individuals with lower levels of education. This division offers some explanation as to why young people generally face greater challenges in the labor market during economic downturns like the COVID-19 crisis. During such downturns, employers are less inclined to hire new workers (such as young individuals entering the job market) or to replace retiring employees.
In a recent communication titled “Harnessing talent in Europe’s regions” (COM(2023) 32 final), the European Commission emphasized the growing global competition for talent. It highlighted that many developed economies are expected to face declining populations in the future, posing a significant challenge. The communication specifically identified the demographic transformation as a cause for concern in several EU regions, where shrinking working-age populations and the potential outflow of young and skilled workforce to other regions or territories could create a talent development trap. The communication recognized that these challenges may limit the ability of certain regions to establish sustainable, competitive, and knowledge-based economies. Moreover, it acknowledged that regional disparities within the EU could be further aggravated by additional structural transformations, such as technological advancements or the shift towards a climate-neutral economy.
Our Approach
At EUJOBS, we are committed to promoting career development in the European job market and supporting the local economy. We understand the current conditions in the EU job market, which include increasing global competition for talent and demographic transformations leading to challenges in various regions.
To address these challenges, we strive to connect job seekers with opportunities that foster their professional growth and advancement. We provide a job search platform that showcases diverse job openings across the EU, enabling individuals to explore new career possibilities and expand their skill sets. By offering a wide range of employment opportunities, including temporary, fixed-term, and zero hours contracts, we aim to cater to the evolving needs of both job seekers and employers.
Additionally, we recognize the importance of nurturing local talent and contributing to the sustainability of regional economies. We actively collaborate with businesses, organizations, and educational institutions across the EU to promote initiatives that develop and retain skilled professionals within their respective regions. By facilitating the exchange of knowledge and expertise, we support the growth of local industries and help create a robust and competitive job market.
Our commitment extends beyond simply connecting job seekers with employers. We provide resources, guidance, and career development tools to empower individuals in their professional journeys. Through our platform, job seekers can access training programs, mentorship opportunities, and industry insights to enhance their skills, improve their employability, and adapt to the evolving job market landscape.
By promoting career development in the EU and supporting the local economy, we strive to make a positive impact on the lives of individuals and the overall prosperity of the European job market. EUJOBS is dedicated to fostering a dynamic and inclusive environment where talent can thrive, businesses can prosper, and the European workforce remains competitive on a global scale.