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01 March 2025

Job Market Trends Shift Across Europe As Spain And Italy Experience Growth

Italy and Spain show job posting increases, contrasting with declines in Germany, France, and the UK.

A detailed analysis of the job market trends across Europe for 2025 has revealed significant disparities among some of the continent's largest economies. Job postings are witnessing notable increases particularly in Italy and Spain, contrasting sharply with declines observed in the UK, Germany, and France.

According to recent data from the hiring platform Indeed, as of early 2025, job postings have surged by 9% in Italy and 4% in Spain on a seasonally adjusted basis during the three months leading to February 14, 2025. Conversely, job postings decreased by 4% in France, 2% in Germany, and 2% in the UK over the same period.

Pawel Adrjan, Director of Economic Research at Indeed, noted, "Italy and Spain are bucking the continued slowdown in hiring... Rising job posting levels are a positive sign for these labour markets." This positive trend is being bolstered by several factors, including the favorable impact of the Next Generation EU funds and enhanced growth within service exports. Spain, for example, has experienced additional economic uplift through population growth supported by immigration.

While the employment and GDP growth rates for Italy saw some slowdown during 2024, the job market outlook for 2025 is expected to remain optimistic—driven by steady household consumption and possibly positive effects from the EU funding initiatives. Adrjan elaborated, "Both labour markets remain tighter than historically." This has manifested itself through solid wage growth as job vacancies increase relative to unemployment levels, which has served to attract more individuals to the labor market.

Examining the job sectors contributing to Spain and Italy's employment growth, Indeed highlights two primary occupational categories: Food Preparation & Service and Software Development. On the contrary, the UK, Germany, and France face declining job trends due to what Adrjan terms "structural headwinds," including stagnant manufacturing and prevailing economic uncertainties.

Expectations for jobs across these countries vary markedly. Adrjan suggests, "Rising job postings suggest employment will continue to rise in Italy and Spain...unless there is any negative impact from geopolitical and trade tensions." He added, "Both labour markets remain tight, as measured by the ratio of job vacancies to unemployment, leading to solid wage growth..." Meanwhile, the outlook for the UK, Germany, and France suggests little job growth is anticipated without significant improvements to broader economic conditions.

Particularly notable among these economies is the UK, which stands out as the only nation still experiencing job postings below pre-pandemic levels. Since February 2020, when job postings were indexed at 100, the UK’s current index is at 85.1 as of mid-February 2025. This decrease indicates long-term declines, which, according to Adrjan, stem from employer caution over economic uncertainty, high-interest rates, and sluggish GDP growth. "This has been especially pronounced in higher-skilled, professional occupations," he explained.

For reference, job postings for Italy and Spain have risen significantly—78% and 52% respectively—above pre-pandemic levels, whereas France has registered a 29% increase and Germany at 26%. Some data analytics, including efforts by the UK's Office for National Statistics, have begun integrating online job postings as part of their statistical reports to provide real-time job market insights.

While online job postings provide valuable indications of job market trends, actual employment rates from the third quarter of 2024 project different insights. Italy reported the lowest employment rate at 67.4%, with Spain at 71.4%. Germany led with the highest rate at 81.2%, followed by France at 75.3% and the UK at 74.9%. Despite its lower rate, Italy's performance highlights it is at its highest rate of employment seen within recent years—a hopeful indication for its economy moving forward.

Overall, the current job market trends across Europe indicate contrasting fortunes for economies on the continent as Italy and Spain lead with optimism, whilst the UK, France, and Germany contend with more challenging conditions. The migrations of job postings reflect broader economic realities, presenting both opportunities and challenges as Europe navigates through the post-pandemic job market.