Euro area unemployment inches up, youth struggles persist in May 2025

The European Union (EU) unemployment rate was 5.9 per cent in May 2025, unchanged from the previous month and marginally lower than the 6 per cent recorded in May 2024.

Eurostat estimated that 13.052 million individuals in the EU were unemployed in May 2025, including 10.830 million in the euro area. Compared to April 2025, unemployment rose by 48,000 in the EU and by 54,000 in the euro area. On a year-on-year basis, unemployment declined by 23,000 in the EU and by 168,000 in the euro area.

Youth unemployment (under 25) remains a significant concern. In May 2025, 2.864 million young people were unemployed across the EU, of whom 2.281 million were in the euro area. The youth unemployment rate rose to 14.8 per cent in the EU (up from 14.7 per cent in April) and to 14.4 per cent in the euro area (up from 14.3 per cent in April).

Youth unemployment in May 2025 increased by 9,000 in EU compared to April 2025, and by 13,000 in the euro area. Over the past year, youth unemployment grew by 3,000 in the EU but declined by 36,000 in the euro area.

Gender disparities remained steady. In May 2025, the unemployment rate for women in the EU stood at 6.1 per cent and for men at 5.7 per cent, both unchanged from the previous month. In the euro area, the rate for women was 6.5 per cent (unchanged), while the rate for men edged up to 6.1 per cent from 6.0 per cent in April 2025.

Expectations for the unemployment rate 12 months ahead decreased to 10.4 per cent in May, from 10.5 per cent in April, according to European Central Bank (ECB)’s Consumer Expectations Survey.

ALCHEMPro News Desk (SG)