EU labor market report for late 2025 and early 2026

According to the European Commission's Quarterly Employment and Social Situation Review, Cyprus was among the top performers in labor productivity in the fourth quarter of 2025, with growth exceeding 2%. Across the European Union, labor productivity rose by 0.8% annually, with Lithuania, Poland, and Malta also recording significant gains. The EU employment rate reached a record high of 76.3%, nearing the 2030 target of 78%, with nine member states meeting or exceeding their national goals. While improvements were notable among women aged 55-64, employment for women aged 15-24 declined by 0.4%. Unemployment rates across the EU dropped to 6.0% in the fourth quarter of 2025 and 5.9% in February 2026, though slight increases were noted among youth and older men. Employment expectations showed signs of stabilization, rising by 1.5 percentage points between September 2025 and February 2026. Greece, Spain, and Bulgaria reported the highest employment expectations, while Belgium, Austria, and Germany reported the lowest.