The unemployment rate is an indicator of the health of a country’s economy, reflecting the percentage of the labour force that is jobless — and actively seeking employment. It is often used to gauge the level of economic distress within the workforce and can influence government policy decisions.
New low-point for unemployment
With that definition out of the way, let’s get to the interesting stuff: the European Union has just hit another low-point in terms of unemployment rates. Across 27 EU member states, the rate has been through a 2008 financial crisis and pandemic-fuelled whirlwind. At the beginning of the century, it was stuck around 9.5%. It started to decline, reaching a low point before the 2008 crisis, and after some fluctuations, it dipped to 6.7% in 2020.
“It is a remarkable feat given the previous decade’s double-digit rates”, say Magnit Global.
It rose again in 2021 (7.5%), in large part due to the COVID-19 pandemic, before dropping back down almost immediately in the following year to a (then) all-time low: 6.3% in 2022. In 2023 it dropped further to 6.1% — before again dropping one further percentage point in the first quarter of 2024 to a new all-time low: 6%. “It is a remarkable feat given the previous decade’s double-digit rates”, say Magnit Global, who recently published a new labour market report.
Malta and Poland lead the way
Eurostat has conclusive unemployment data on a total of 36 countries. While some countries’ results are omitted from the 2024 ranking, Malta (2.6%), Poland (2.9%) and Czechia (3%) are the leaders with the lowest unemployment rates. Following closely are Germany (3.1%), Slovenia (3.3%), and the Netherlands (3.6%) with the next lowest unemployment rates.
Greece’s economic rebuild
On the other end of the spectrum: Greece’s unemployment has dipped quite dramatically in the past ten years. As recent as 2013, over 400,000 people left the country, and the unemployment rate reached a high of 27.5%. That figure soared to 58% among those aged 25 and under. During the crisis’s peak, real concerns emerged that the collapse of Greece might lead to the disintegration of the eurozone — the consortium of 19 nations using the euro.
The only reason unemployment is dropping? “Because they accept miserable wages”, say correspondents.
In 2024, Greece’s unemployment rate is back down to 10.4%, roughly what it was in the latter stages of 2009, before things went awry. Under the hood, however, still lies a serious issue — according to a recent report by French newspaper Le Monde. Its gross domestic product (GDP) may have grown by 2.3%, but the only reason unemployment is dropping? “Because they accept miserable wages”, say correspondents in Greece and Portugal, among other countries.
Trouble in Spain
Spain’s numbers are similar to Greece — and now has the biggest unemployment rate of the continent. Portugal, its neighboring country, has made a noteworthy turnaround, with the unemployment rate dropping from 18.3% in 2013 to a mere 6.7% in 2024. Meanwhile, Spain’s numbers have dropped too, but still lie at 11.6% in the first month of 2024.
“At times, when the economy is doing well, more jobs are generated, but when things go wrong, they’re destroyed with great intensity.”
Despite an increase in jobs, Spain has high unemployment due to low productivity and an overreliance on small firms to carry the economy. In an article on El Pais, Miguel Basterra, a professor at the University of Alicante, said that Spain’s economic model relies heavily on sectors prone to job loss, like construction and hospitality. “At times, when the economy is doing well, more jobs are generated, but when things go wrong, they’re destroyed with great intensity.”
Germany’s 1.7 million open vacancies
Moving over to the vacancy side of things, it’s hard to see the unemployment rates — for most countries, at least — dropping much further. The open number of vacancies is still high across many nations. Germany still leads the pack, with a total of 1.7 million open job vacancies. The Netherlands is second, with approximately 413 thousand open jobs — and Austria and Belgium, both vying for the bronze medal, have around 200 thousand open vacancies.
The open number of vacancies is still high across many nations. Germany still leads the pack, with a total of 1.7 million open job vacancies.
Looking at the job vacancy rate — the percentage of unfilled positions in the workforce — Belgium takes first place on the continent with a rate of 4.4%. The Netherlands again comes into second place (4.2%) — while Austria (4.1%) and Germany (3.9%) follow closely.
Software developers are still hard to find
While the ageing problem isn’t going to go away anytime soon, a skills-based approach to hiring seems more relevant than ever before. According to Magnit data, the most in-demand skills are digital advertising, market research and analysis, quality control and assurance, machine learning, and research development. In other words: mostly digital skills.
Magnit found that software developers, sales assistants and warehouse associates were the jobs most in-demand.
Magnit also accumulated a list of jobs that were most in-demand in 2023. If you’re a software supplier, aiming to develop a revolutionary AI-system that is integrated in hardware, which has to be stored in warehouses — you’ve had a pretty rough hiring year. Magnit found that software developers, sales assistants and warehouse associates were the jobs most in-demand.
The need for AI skills
Speaking of AI: over the past year, Europe saw remarkable advancements in integrating AI last year — rising to 8%, up 3% since 2021. Leading the way, according to Eurostat data: Denmark, Finland, Luxembourg, Belgium and the Netherlands. AI is becoming a pivotal skill area for companies to focus on, with a notable uptick in job categories requiring AI competencies. Could it finally transform hiring practices into a more skills-based approach?
“This shift aims at uncovering AI talent, whether through external recruitment or by enhancing internal capabilities via upskilling and redeployment.”
Workers skilled in AI form a distinct segment, necessitating precise data for competitive compensation and effective sourcing strategies throughout Europe. As AI-related abilities rarely appear in conventional resumes, job titles, or degrees — the researchers urge organisations to adopt a skills-focused hiring method. “This shift aims at uncovering AI talent, whether through external recruitment or by enhancing internal capabilities via upskilling and redeployment.”
