| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Rate | 6.2% | 6.2% to 6.2% | 6.2% | 6.2% | 6.3% |
Highlights
The euro area labour market showed further resilience in July 2025, with the unemployment rate easing to 6.2 percent from 6.3 percent in June and 6.4 percent a year earlier, in line with the consensus forecast and the lowest level in over a year. Eurostat estimates that 10.8 million people were unemployed, representing a monthly decline of 170,000 and a yearly decrease of 161,000, reflecting steady progress despite broader economic headwinds.
Youth unemployment also improved notably. The jobless rate among under-25s fell to 13.9 percent, the lowest in several months, with 64,000 fewer unemployed than in June and 155,000 fewer than in July 2024. This suggests a gradual recovery in opportunities for young people, a group that is often most vulnerable to cyclical downturns. Gender disparities persisted but narrowed slightly. Women's unemployment slipped to 6.4 percent, while men's declined to 6.1 percent, both showing incremental monthly improvements.
Overall, the July figures suggest the euro area continues to create a more stable labour environment. Falling joblessness among both young people and the wider workforce indicates resilience in the face of sluggish growth and external uncertainties. Yet, with youth unemployment still more than double the general rate, structural challenges remain for ensuring inclusive and sustainable labour market recovery. This latest update takes the RPI to minus 2 and the RPI-P to minus 3, meaning that economic activities are now within the expectations of the euro area economy.
Youth unemployment also improved notably. The jobless rate among under-25s fell to 13.9 percent, the lowest in several months, with 64,000 fewer unemployed than in June and 155,000 fewer than in July 2024. This suggests a gradual recovery in opportunities for young people, a group that is often most vulnerable to cyclical downturns. Gender disparities persisted but narrowed slightly. Women's unemployment slipped to 6.4 percent, while men's declined to 6.1 percent, both showing incremental monthly improvements.
Overall, the July figures suggest the euro area continues to create a more stable labour environment. Falling joblessness among both young people and the wider workforce indicates resilience in the face of sluggish growth and external uncertainties. Yet, with youth unemployment still more than double the general rate, structural challenges remain for ensuring inclusive and sustainable labour market recovery. This latest update takes the RPI to minus 2 and the RPI-P to minus 3, meaning that economic activities are now within the expectations of the euro area economy.
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.
