European Union Employment Change y/y

Employment Change y/y shows the change in the number of people employed in the euro area resident companies in the given year compared to the previous one. The indicator calculation includes all types of employment: full-time, part-time, self-employment, etc.

Data for the indicator calculation are collected for all the EU Member States. Information is collected based on censuses, employment and income tax registers, surveys of production activities, etc.

Employment change is an important macroeconomic indicator. It allows evaluating the state of the labor market in the eurozone. Other key indicators of the EU economy health are calculated on its basis. For example, a parallel assessment of employment change and GDP changes provides an indicator of productivity. In combination with data on remuneration received by employees, the employment change provides the unit labor costs. Employment data is also used in the value added calculation.

Economists may interpret the data on employment changes in relation to forecasting consumer activity. A growing employment suggests that the income of the population will grow, which may lead to a higher consumer activity. People will spend more. This allows predicting inflation to grow and to reach the target level. So, employment growth is usually seen as positive for euro quotes.