Labour Market Churn Persists Across EU Beneath Stable Headline Figures

Millions of people across the European Union continued to move in and out of work in mid-2025, despite overall labour market indicators suggesting relative stability.

New figures published by Eurostat this week reveal substantial flows between employment, unemployment and economic inactivity between the second and third quarters of the year, shedding light on the scale and direction of labour market movements beneath the surface.

Eurostat reported that “3.1 million unemployed people in the EU found a job between the second and third quarters of 2025”, a transition that accounted for 23.0 per cent of everyone who was unemployed in the second quarter. Over the same period, the majority of unemployed individuals did not change status, with 7.0 million people — representing 52.4 per cent — remaining out of work.

At the same time, significant numbers exited the labour market entirely. According to the data, 3.3 million people who had been unemployed in the second quarter moved into inactivity by the third quarter, equivalent to 24.5 per cent of the unemployed population from the previous quarter.

The figures are drawn from Eurostat’s labour market flow statistics, which focus on movements between employment, unemployment and inactivity rather than relying solely on fixed quarterly totals. This approach highlights the continuous churn within the EU labour market, even during periods when headline employment and unemployment rates appear largely unchanged.

Flows were also evident among those who had been in work. Eurostat found that 2.6 million people who were employed in the second quarter of 2025 became unemployed in the third quarter, accounting for 1.2 per cent of all employed individuals. In addition, 4.7 million workers, or 2.2 per cent of the total employed population, left the labour force altogether over the same period.

The data further show that transitions were not one-sided. Among those who were economically inactive in the second quarter of 2025, 4.2 million people moved into employment in the third quarter, representing 3.7 per cent of the inactive population. A further 3.9 million individuals, or 3.4 per cent, shifted from inactivity into unemployment during the same timeframe.

Together, the figures underline the extent of labour market dynamism across the EU, revealing substantial movement between different employment states even as broader economic conditions remain relatively stable.

By fLEXI tEAM