In June 2024, the EU recorded 2.831 million unemployed young people under the age of 25, of whom 2.270 million were in the euro area. The youth unemployment rates showed a slight decrease this month. Reaching 14.4% in the EU compared to 14.5% in May 2024. In the euro area, the rate fell to 14.1% from 14.2% the previous month. Despite this slight decrease compared to the previous month, youth unemployment has increased compared to the previous year. In June 2023, the number of unemployed young people increased by 18,000 in the EU and by 8,000 in euro area.
Looking at the data, it is clear that there was a limited improvement in the youth unemployment rate at EU and euro area level in June 2024. But the overall situation still requires continued efforts to address the challenges related to youth employment. Unemployment by gender: In June 2024, the unemployment rate among women was 6.3% in the EU, unchanged from May 2024, and the unemployment rate among men was 5.8%. also unchanged from the previous month.
In the euro area, the unemployment rate among women was 6.8%, up from 6.7% in the previous month, and the unemployment rate among men was 6.2%, unchanged from May 2024. Additional Laboure market indicators: The estimates in this press release are based on the standard definition of unemployment used by the International Labour Organization worldwide. which includes unemployed people who do not have a job and who have been actively looking for work in the past four weeks and are available to start work within the next two weeks.
To fully capture the state of the labour market, the unemployment data has been supplemented by additional indicators, e.g. part-time workers unable to work, people looking for work but not immediately available.
Unemployment data update and country notes
The data in this press release may be subject to revision based on updates to the seasonally adjusted series. as the figures are revised as new monthly data are added. The latest Labour Force Survey (LFS) data are also included in the calculation and the seasonal adjustment models are updated using full annual data.
Compared to the prices published in the press release of 2 July 2024, the unemployment rate for May 2024 in the EU or the euro area has not changed. However, the unemployment rate for one Member State has been revised down by more than 0.1 percentage points (pp) in Greece, by 0.3 percentage points. In contrast, the unemployment rate was not revised upward by more than 0.1 percentage points (pp) in any of the other Member States.
Notes by country
Germany, Netherlands, Finland, Sweden, Iceland, Norway: The trend component is used instead of the more volatile seasonally adjusted data to provide a more stable assessment.
Estonia and Portugal: Three-month moving averages of the Labour Force Survey (LFS) data are used, instead of relying solely on monthly indicators, to provide a more accurate analysis.
Data presented: The data in this press release may be subject to adjustment based on updates to the seasonally adjusted series. These updates include adding new monthly data, including the latest LFS data in the calculation, and updating the seasonal adjustment models using full annual data.
Compared to previous data: Compared to the press release of 2 July 2024, no change in the unemployment rate for May 2024 in the EU or the euro area is recorded. However, the unemployment rate was revised up in some Member States:
In Greece, the rate was lowered by more than 0.1 percentage points (pp), with the decline amounting to 0.3 percentage points.
Impact of current economic events
How can global events such as economic or political crises affect the unemployment rate in European countries?
1. New employment strategies: There may be new programmes or employment strategies that have recently been implemented in some member states that may affect unemployment rates.
2. Future developments: International Laboure organizations’ forecasts of the future of youth and adult unemployment, and how European countries are adapting to upcoming economic changes.
3. Data updates: Follow regular data updates from official statistical bodies to get the latest figures and adjustments.
Economic impacts of unemployment
1. Impact on economic growth:
Reduced productivity: Unemployment means that there is a shortage of an effective workforce, leading to a decline in productivity and economic growth.
Loss of income: Unemployed individuals lose their source of income, which reduces their ability to spend and negatively affects aggregate demand in the economy.
2. Social support costs:
Increased government expenditure: The government may need to spend more money on social benefits and unemployment insurance, which increases financial pressures on the public budget.
Reduced investment: Increased government spending on unemployment programs may lead to reduced investment in other projects, such as infrastructure or education.
Social impacts of unemployment
1. Mental health: Increased anxiety and depression: Unemployment can lead to increased levels of anxiety and depression, as individuals experience financial and personal stress. Public health impacts: Long-term unemployment can lead to general health problems such as sleep disorders and an increased risk of heart disease.
2. Effects on the family: Increased family stress: Unemployment can cause tension in family relationships due to financial pressures and difficulty managing daily life.
3. Social belonging and isolation: Impact on community belonging: Unemployment can lead to feelings of isolation and loss of belonging to the community, affecting social relationships and community cohesion.
Strategies to mitigate the effects
Support and training programmes: Provide training and career development programmes to help the unemployed acquire new skills and increase their chances of finding jobs.
Economic measures: Implement incentive policies to stimulate economic growth and create new jobs, such as investment in infrastructure and small and medium-sized enterprises.
Psychosocial support: Provide psychosocial support services to help individuals and families cope with the psychological and social impacts of unemployment.
