Euro Employment Update:  Euro zone employment witnessed a moderate increase in the fourth quarter of 2023, according to the latest data released by the European Union statistics office, Eurostat, on Friday. The figures, although confirming the earlier estimate for the quarter-on-quarter growth, revealed a slight downward revision in the year-on-year employment growth.

Quarter-on-quarter, Euro zone employment rose by 0.3 per cent, aligning with the previous estimate. However, on a year-on-year basis, the growth stood at 1.2 per cent, down slightly from the initial estimate.

In comparison, a Reuters poll had anticipated a similar quarter-on-quarter growth of 0.3 per cent, but slightly higher year-on-year growth of 1.3 per cent.

The employment growth rates across the Euro area and the European Union for each quarter of 2023 reveal a modest upward trend, indicating a gradual recovery in the labour market. In the Euro Area, employment increased by 0.6 per cent QoQ and 1.7 per cent YoY in the first quarter of 2023. However, the growth moderated slightly in the following quarters, with QoQ increases of 0.1 per cent, 0.2 per cent, and 0.3 per cent in Q2, Q3, and Q4 respectively, accompanied by YoY growth rates of 1.4 per cent, 1.4 per cent, and 1.2 per cent.

Similarly, in the European Union, employment showed a comparable pattern, with QoQ growth rates of 0.5 per cent, 0.1 per cent, 0.2 per cent, and 0.2 per cent for Q1 through Q4 respectively, and corresponding YoY growth rates of 1.5 per cent, 1.2 per cent, 1.2 per cent, and 1.0 per cent.

While these figures reflect a positive trajectory in employment, they also signal a moderation compared to earlier expectations. This data highlights the persisting challenges facing the Euro zone economy amidst global uncertainties and internal structural shifts.

(With Reuters Inputs)