Unemployment in EMU

The overall EMU-wide and EU-wide unemployment rates were steady in June. For the EMU the rate is 6.2% and for the EU the rate is at 5.9%. According to data back to January 2020, the EMU rate has been this low or lower 1.3% of the time while the EU rate has been this low or lower 2.6% of the time. The EU rate at 5.9% is just above its all-time low (of 5.8%) on this horizon while the EMU rate remains at 6.2%, which is its all-time low on this horizon.

In June, four of twelve reporting EMU members logged month-to-month drops in their unemployment rates against only two where unemployment rates rose. This compares to May when seven members reported lower rates of unemployment. In April, nine reported unemployment rate drops.

Sequential data over 12 months, six months and three months show unemployment rates falling in six of 12 EMU members, over all three horizons: three-months, six-months, and twelve-months.

Among the 12 reporting members in the table, only three have unemployment rates above their respective medians since 2000 (rankings above 50%) in this period.

Elsewhere the U.S. unemployment rate fell in the month and was otherwise stable over the past year. The U.K. claimant rate of unemployment has snake higher beginning in May. Japan’s unemployment rate remains anchored at 2.5%. Among these three countries, the U.K. has an unemployment rate above its historic median at 62.7%.

European growth has been slow as the emerging GDP data for 2025-Q2 are confirming. But the labor market in Europe remains very solid. Inflation seems to be winding down in Europe. Europe may even be in for some growth turbulence because of the new U.S. tariff policy. However, for now, the labor market looks quite solid, and growth remains the orders of the day even if it is slow.