In July 2022, the euro area unemployment rate was 6.6%, down from 6.7% in June 2022 and from 7.7% in July 2021, while in the EU unemployment rate was 6.0% in July 2022, down from 6.1% in June 2022 and from 6.9% in July 2021, according to Eurostat, the statistical.

The statistical office of the European Union estimates that 12.959 million men and women in the EU, of whom 10.983 million in the euro area, were unemployed in July 2022.

Compared with June 2022, the number of persons unemployed decreased by 113 000 in the EU and by 77 000 in the euro area.

According to analysts from ING Bank, the rate is currently well below the natural rate of unemployment, which suggests upward pressure on wages. At the same time though, there is little evidence of this happening so far.

Negotiated wage growth – most Europeans see wages adjusted by collective bargaining agreements – grew at an annual rate of 2.1% in 2Q, which is still well below what is to be expected given labour shortages and high inflation.

The labour market is at an interesting crossroads at the moment. Employment expectations from businesses are dropping moderately and the economy is moving towards recession at the moment.

Given the tight labour markets in most eurozone economies, the expectation is that some degree of labour hoarding will take place to ensure adequate staffing once the economy recovers.