Danske Research Team expects the second estimate of Euro area Q4 2025 GDP to confirm modest employment growth. National data show strong job gains in Spain but slight declines in France and Germany, leading the bank to project Euro area employment up 0.1% quarter-on-quarter. They see continued job growth as positive but indicative of a cooling labour market.
Employment growth slows as economy cools
“In the euro area, the second estimate of GDP growth in 2025Q4 will also reveal how much employment changed in the final quarter of last year.”
“National data show that employment rose sharply in Spain while declined marginally in France and Germany.”
“We thus expect aggregate euro area employment rose 0.1% q/q.”
“The continued growth in employment is positive for the economy, but the low employment growth rate is also showing that the labour market is cooling.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/euro-area-cooling-labour-market-with-modest-job-gains-danske-bank-202602130824
