Unemployment in the European Union reached an all-time low in 2023 as Member States struggle with labour shortages and are at odds over how to address them.
Data published by Eurostat on Tuesday reveals that unemployment in the eurozone fell to 6.4% in November, down from 6.5% in October and 6.7% in November 2022.
Unemployment across the entire EU also decreased, falling from 6% in October to 5.9% in November, compared to 6.1% in November 2022. These are the lowest recorded figures since the institution began monitoring the labour market in April 1998.
Overall, 12.594 million people in the EU are unemployed, including 10.97 million in the eurozone. Spain (11.9%) and Greece (9.4%) reported the highest rates, while the lowest rates were in the Czech Republic (2.4%), Iceland (2.8%) and Poland (2.8%).
Unemployment in Belgium currently stands at 5.8%, up slightly in recent months. The country recorded its lowest unemployment rate (4.9%) in April 2020.
Labour shortages
Although the Czech Republic enjoys the lowest unemployment rates in Europe, this is linked to exceptional difficulties in finding and retaining staff. These difficulties, spurred on in part by an ageing population, loom over the entire continent, and European leaders are at odds over how to repopulate the labour market.
EU Minister for Home Affairs Ylva Johansson said on Tuesday that Europe needs one million migrants yearly to compensate for acute labour shortages. Far-right politicians such as Hungarian Prime Minister Viktor Orbán decry this strategy and advocate instead for higher natality rates.
The European Central Bank (ECB) is also eyeing labour market statistics closely, given that pressure on employment often results in wage increases, which in turn could fuel inflation.
