Labour market - Q2 2025

The labour input, as measured by hours worked, increases compared both to the previous quarter (+0.2%) and to the second quarter of 2024 (+1.7%). In the same period GDP decreased by 0.1% quarter-on-quarter and increased by 0.4% year-on-year.

The number of people in employment remains broadly stable compared with the first quarter of 2025, reflecting a decline in employees—both permanent (−21 thousand, −0.1%) and fixed-term (−45 thousand, −1.7%)—which is offset by an increase in the number of self-employed workers (+74 thousand, +1.4%). The number of unemployed people increases (+13 thousand, +0.8% over three months), while the number of inactive individuals aged 15 to 64 decreases (−16 thousand, −0.1%). Employment, unemployment, and inactivity rates remain virtually unchanged compared with the previous quarter, standing at 62.6%, 6.3%, and 33.0%, respectively. According to provisional figures for July 2025, compared with the previous month, the increase in the number of employed person and in the employment rate (+0.1 percentage points) is accompanied by a decrease in the unemployment rate (−0.3 points) and a slight increase in the inactivity rate for those aged 15 to 64 (+0.1 points).

On an annual basis, employment continues to grow—albeit at a slower pace—with an increase of +226 thousand people in work (+0.9% over the year), driven by rises in both permanent employees (+1.9%) and the self-employed (+3.0%), which offset a decline in temporary employees (−7.7%). The number of unemployed individuals, after sharp declines in previous quarters, shows signs of stabilising (−9 thousand over the year, −0.5%), while the number of inactive people aged 15 to 64 continues to fall (−150 thousand, −1.2%). A similar trend appears in the rates: compared with the second quarter of 2024, the employment rate increases by +0.4 percentage points, the unemployment rate falls slightly (−0.1 points), and the inactivity rate decreases more markedly (−0.4 points).

On the enterprise side, total jobs grow by 0.4% on a quarterly basis; the increase is slightly lower for full-time employees (+0.3%) compared to part-time (+0.5%). On an annual basis total and full-time jobs increase by 1.7% and part-time by 1.5%.

The hours worked per employee show a  decrease both on a quarterly basis (-0.5%) and on annual basis (-0.3%). The use of short-time working allowances decreases to 6.7 hours per 1,000 hours worked (-0.8 hours per 1,000 hours worked with respect to the second quarter 2024). The job vacancy rate is unchanged compared to previous quarter while decreasing with respect to the same quarter of the previous year (-0.4 percentage points).

On a quarterly basis, total labour cost increases at the same pace as wages by 0.6%, while social contributions’ growth is equal to 0.7%. Compared to the second quarter of 2024, labour cost increase is still significant, equal to 3.6% due to a growth of wages equal to 2.9% and a new significant rise in social contributions, equal to 4.9%. Besides the positive impact of renewed National Contracts on wages, the weakening of some social security relief measures is the main cause of the substantial rise in contributions.