FX.co ★ Euro Area Employment Growth Maintains Momentum

Employment in the Euro Area increased by 0.2% quarter-on-quarter to 172.6 million in the final quarter of 2025, confirming the preliminary estimate. The result matched the pace of growth recorded in the previous quarter and surpassed market expectations of a 0.1% rise. This marked the bloc’s 19th consecutive quarter of employment gains, underscoring a slow but steady improvement in the European labor market despite concerns that a stronger euro could dampen orders for major employers. Among the largest Eurozone economies, job growth remained robust in Spain (0.8% vs. 0.7% in Q3) and Italy (0.3% vs. 0.2%), offsetting a second consecutive quarter of contraction in Germany (-0.1% vs. -0.1%). Germany has now gone 10 straight quarters without a meaningful increase in employment.