Employment and social developments in Europe Quarterly review - October 2025

In the second quarter of 2025, the EU real GDP growth slowed to 0.2% quarter-on-quarter (1.6% year-on-year), while euro area inflation eased to 2.0% in August, down slightly from 2.5% in March. For the remainder of the year, GDP growth is projected to hold steady at 1.3%, with inflation expected to remain around 2.1% in the euro area. On the labour market side, employment increased by 0.1% q-o-q in Q2 2025 and the employment rate reached 76.2% in the same period, moving closer to the 2030 target of 78.0%. Older and female workers drove much of the progress, while the share of low-educated workers in total employment remained stable q-o-q (but declined by 1% y-o-y). Labour productivity grew by 0.9% year-on-year, even though trends varied a lot across EU countries. Real Gross Disposable Household Income (GDHI) growth decreased in the second quarter of 2025, driven by lower net social benefits and property income. Financial distress in the EU eased slightly in September 2025. The thematic part provides an overview of single adults without children and their exposure to poverty and loneliness. In the last decade, single adults without children increased by 17%, against a 6% increase in the total number of households. This demographic group is more likely to live at the risk of poverty and feel lonely compared to the overall adult population.

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Statistical annex

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