| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Rate | 6.2% | 6.2% to 6.2% | 6.3% | 6.2% |
Highlights
The euro area labour market showed that unemployment rate rose slightly to 6.3 percent from 6.2 percent in April, reflecting a modest improvement from 6.4 percent in May 2024, suggesting gradual recovery over the year. The total number of unemployed individuals reached 10.83 million, with an increase of 54,000 from the previous month. However, this represents a yearly reduction of 168,000, indicating that long-term job creation may be holding steady despite short-term fluctuations.
Youth unemployment remains a persistent concern. At 14.4 percent, it is more than double the general unemployment rate and up from 14.3 percent in April. Approximately 2.281 million young people under 25 were unemployed, with a month-over-month increase of 13,000. This suggests vulnerability among young job seekers, particularly in the face of economic uncertainty.
Gender disparities also persist, as the unemployment rate for women stood at 6.5 percent, unchanged from April, while the rate for men rose slightly to 6.1 percent. These figures suggest that while the labour market is showing signs of resilience, specific groups, especially the youth and women, continue to face disproportionate employment challenges.
Among the biggest economies in the area, the national unemployment rate did not change between April and May in Germany (3.7 percent after 3.7 percent) and France (7.1 percent after 7.1 percent). However, it slightly fell in Spain (10.8 percent after 10.9 percent), while it rose in Italy (6.5 percent after 6.1 percent). These latest updates take the RPI to minus 32 and the RPI-P to minus 38. This means that economic activities remain well behind of the expectations of the euro area economy.
Youth unemployment remains a persistent concern. At 14.4 percent, it is more than double the general unemployment rate and up from 14.3 percent in April. Approximately 2.281 million young people under 25 were unemployed, with a month-over-month increase of 13,000. This suggests vulnerability among young job seekers, particularly in the face of economic uncertainty.
Gender disparities also persist, as the unemployment rate for women stood at 6.5 percent, unchanged from April, while the rate for men rose slightly to 6.1 percent. These figures suggest that while the labour market is showing signs of resilience, specific groups, especially the youth and women, continue to face disproportionate employment challenges.
Among the biggest economies in the area, the national unemployment rate did not change between April and May in Germany (3.7 percent after 3.7 percent) and France (7.1 percent after 7.1 percent). However, it slightly fell in Spain (10.8 percent after 10.9 percent), while it rose in Italy (6.5 percent after 6.1 percent). These latest updates take the RPI to minus 32 and the RPI-P to minus 38. This means that economic activities remain well behind of the expectations of the euro area economy.
Market Consensus Before Announcement
The jobless rate is seen flat at 6.2 percent in May from April.
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.
