Women and young people lead the growth, but overqualification remains an issue in some countries
The EU labour market continues to show a positive trend, with the employment rate reaching a record high of 75.5% in 2023, according to the latest figures from Eurostat. This translates to over 195 million people in the 20-64 age group currently employed, signifying a steady rise over the past three years following the dip caused by the COVID-19 pandemic in 2020.
Report Highlights:
- Employment Rate at Peak: The EU employment rate hit 75.5% in the fourth quarter of 2023, surpassing 75% for the first time since records began in 2009.
- Steady Recovery: This positive growth marks three consecutive years of labour market rebound since the 72% drop in 2020 due to the pandemic.
- Youth Leading Growth: The 20-64 age group is the biggest contributor to the employment rise, with a 75% employment rate, the highest ever recorded.
- Variations Across Countries: Employment rates differ significantly among member states. The Netherlands (84%), Sweden (83%), and Estonia (82%) lead the rankings, while Italy (66%), Greece (67%), and Romania (69%) fall at the lower end.
- Gender Overqualification: The overqualification rate in the EU stands at 22%, with women (23%) more likely than men (21%) to be in jobs below their educational attainment.
- Spain and Greece Top Overqualification: Among EU countries, Spain (36%) has the highest overqualification rate, followed by Greece (31%) and Cyprus (30%).
- Luxembourg and Central Europe with Lower Overqualification: Luxembourg (5%) registers the lowest overqualification rate, followed by Denmark and Czech Republic (both at 13%).
- Gender Gap in Overqualification: In 18 EU countries, women have higher overqualification rates than men, with the most notable differences in Malta and Slovakia (both at +8 percentage points) and Italy (+7 pp).
- Exceptions: However, in 9 EU countries, men have higher overqualification rates, with Lithuania (+5 pp), Latvia (+4 pp), and Bulgaria (+3 pp) recording the biggest gaps.
Overall, the EU labour market figures are positive and indicate a strong recovery post-pandemic. However, some disparities between countries and genders remain, suggesting there’s still room for improvement in optimizing the European Union’s workforce potential.
For more information, consult Eurostat: