| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Rate | 6.3% | 6.3% to 6.3% | 6.2% | 6.3% | 6.2% |
Highlights
The unemployment rate held steady at 6.2 percent in January, unchanged from the previous month and showing a modest improvement from 6.5 percent a year earlier. This downward trend reflects continued economic stabilization, with 547,000 fewer unemployed individuals compared to January 2024. However, the month-over-month reduction of 42,000 unemployed individuals suggests slowing job recovery.
Youth unemployment, often a bellwether for economic inclusivity, declined slightly to 14.1 percent, yet a marginal increase of 3,000 unemployed youths from December 2024 indicates lingering fragility in job opportunities for young workers. Encouragingly, an annual drop of 93,000 in youth joblessness hints at structural improvements. Gender disparities persisted, with women facing higher unemployment (6.4 percent) compared to men (6.0 percent). While both rates remained stable, this gap underscores ongoing challenges in labor market equality.
Amongst the larger euro area countries, the national unemployment rate fell in Italy (6.3 percent after 6.4 percent) and Spain (10.4 percent after 10.6 percent), while it remained stable in France and Germany at 7.3 percent and 3.5 percent, respectively. The euro area's employment landscape appears steady but cautious, balancing slow recovery and sectoral vulnerabilities, particularly for youth and gender disparities. The latest update leaves the Euro Area RPI at 16 and the RPI-P at 20. This means that economic activities are well ahead of the market's expectations in the Euro Area.
Youth unemployment, often a bellwether for economic inclusivity, declined slightly to 14.1 percent, yet a marginal increase of 3,000 unemployed youths from December 2024 indicates lingering fragility in job opportunities for young workers. Encouragingly, an annual drop of 93,000 in youth joblessness hints at structural improvements. Gender disparities persisted, with women facing higher unemployment (6.4 percent) compared to men (6.0 percent). While both rates remained stable, this gap underscores ongoing challenges in labor market equality.
Amongst the larger euro area countries, the national unemployment rate fell in Italy (6.3 percent after 6.4 percent) and Spain (10.4 percent after 10.6 percent), while it remained stable in France and Germany at 7.3 percent and 3.5 percent, respectively. The euro area's employment landscape appears steady but cautious, balancing slow recovery and sectoral vulnerabilities, particularly for youth and gender disparities. The latest update leaves the Euro Area RPI at 16 and the RPI-P at 20. This means that economic activities are well ahead of the market's expectations in the Euro Area.
Market Consensus Before Announcement
No change at 6.3 percent is the call.
Definition
The unemployment rate measures the number of unemployed as a percentage of the labor force.
Description
Unemployment data are closely monitored by the financial markets. These data give a comprehensive report on the state of the economy and its future direction. A rising unemployment rate can be a warning sign of hard times while a low rate can be a warning of inflation as wages are bid up to attract labor.
Unemployment data are expressed in both a numerical value and as a percentage of the labor force. Generally, the definition of those unemployed follows that of the International Labour Organisation (ILO). It states that an unemployed person is one between the ages of 15 to 74 years of age who was not employed during the reference week, had actively sought work during the past four weeks and was ready to begin working immediately or within two weeks. The unemployment rate is the percentage of unemployed persons over the total number of active persons in the labor market. Active persons are those who are either employed or unemployed.
Eurostat provides an unemployment rate for each EU country as well as for the EMU and EU as a whole. It should be noted that the unemployment rate for a country will frequently differ with that reported by the national statistics agency. That is because of the varying interpretations of the ILO definition by member states and Eurostat.
Unemployment data are expressed in both a numerical value and as a percentage of the labor force. Generally, the definition of those unemployed follows that of the International Labour Organisation (ILO). It states that an unemployed person is one between the ages of 15 to 74 years of age who was not employed during the reference week, had actively sought work during the past four weeks and was ready to begin working immediately or within two weeks. The unemployment rate is the percentage of unemployed persons over the total number of active persons in the labor market. Active persons are those who are either employed or unemployed.
Eurostat provides an unemployment rate for each EU country as well as for the EMU and EU as a whole. It should be noted that the unemployment rate for a country will frequently differ with that reported by the national statistics agency. That is because of the varying interpretations of the ILO definition by member states and Eurostat.
