Labour market - Q4 2025

The labour input, as measured by hours worked, remains stable compared to the previous quarter and increases compared to the fourth quarter of 2024 (+1.6%). In the same period GDP increases by 0.3% quarter-on-quarter and by 0.8% year-on-year.

The number of employed persons, standing at 24 million 121 thousand, increases compared with the previous quarter, (+37 thousand, +0.2%), following a growth in permanent employees (+76 thousand, +0.5%) and in self-employed (+21 thousand, +0.4%), which more than offset the decline in temporary employees (-60 thousand, -2.4%). The number of unemployed persons falls (-84 thousand, -5.5% over three months), while that of inactive individuals aged 15-64 rises (+61 thousand, +0.5%). Net of seasonal effects, the employment rate remains stable at 62.5%, the unemployment rate decreases to 5.6% (-0.3 percentage points), while the inactivity rate rises to 33.7% (+0.2 percentage points). According to provisional data for January 2026, the month-on-month increase in the number of employed persons (+0.3%) and in the employment rate (+0.2 percentage points) combine with a decrease in the unemployment rate (-0.4 percentage points) and a rise in the inactivity rate among those aged 15-64 (+0.1 percentage points).

On a yearly trend basis, after a quarter of stability, the number of employed persons returns to growth (+89 thousand, +0.4%). The increase in permanent employees (+1.0%) and self-employed workers (+3.0%) more than offset the decline in temporary employees (-8.6%). In the fourth quarter of 2025, after a slight increase in the previous quarter, the number of unemployed falls again (-138 thousand, -8.9% over one year) while, after three quarters of decline, the number of inactive individuals aged 15-64 rises (+49 thousand, +0.4%). The rates follow the same pattern: the employment rate rises to 62.4% (+0.1 percentage points), the unemployment rate falls to 5.5% (-0.5 percentage points), and the inactivity rate increases to 33.9% (+0.2 percentage points).

On the enterprise side, total jobs grow by 0.3% quarter-on-quarter, slightly higher for part-time (+0.5%) compared to full-time employees (+0.3%), bringing the share of total jobs that are part-time to 28.9% (+0.1 percentage points). Year-on-year total jobs increase by 1.6%, similar for both components, implying a small decrease in the share of part-time. Quarter-on-quarter, both temporary employment agency and on-call jobs record an increase (+1.0% and +1.5% respectively) with the former remaining stable and the latter increasing significantly on an annual basis (+5.7%). Per capita hours worked decrease compared to the previous quarter (-0.5%) but increase relative to the fourth quarter of 2024 (+0.5%). The use of short-time working allowances decreases to 7.8 hours per 1,000 hours worked (-1.7 hours per 1,000 hours worked with respect to the fourth quarter 2024). The job vacancy rate stands at 1.9%, representing an increase compared to the previous quarter (+0.1%). However, comparing to the fourth quarter 2024, it still decreases (-0.1%). On a quarterly basis, total labour cost increases by 0.3%, as in its two components, wages and social contributions. Compared to the fourth quarter of 2024, labour cost increase is still significant, equal to 2.9% due to a growth of wages equal to 2.5% and a new significant rise in social contributions, equal to 4.2%. 

In the 2025 annual average, the increase in employed persons (+185 thousand, +0.8% over one year) associates with a decrease in unemployed persons (-88 thousand, -5.3%) and in inactive individuals aged 15-64 (-58 thousand, -0.5%). The employment rate for those aged 15-64 rises to 62.5% (+0.3 percentage points over one year), while the unemployment rate (6.1%, -0.4 percentage points) and the inactivity rate for those aged 15-64 (33.3%, -0.1 percentage points) fall. On the enterprise side, the growth in labour input continues, albeit at a slower pace than in 2024: the number of employees increases by 1.7% and the total number of hours worked by 2.1% (net of calendar effects); the use of temporary layoffs decreases (-1.0 hours per thousand worked) while the use of overtime increases (+0.1%). The average vacancy rate in 2025 decreases by 0.3 percentage points, recording the value of 1.8% (compared to 2.1% on average in 2024). Labour cost grows at a sustained rate (+3.6%), mainly due to several National Contracts’ renewals and to the reduction in the effects of some social contribution reliefs.