The European Labour Market Barometer falls below the neutral mark of 100 points for the first time this year. The labour market leading indicator of the European Network of Public Employment Services and the IAB records a decline of 1.0 points compared with July and stands at 99.7 points in August. This is due in particular to the unemployment component, which drops significantly by 1.2 points in August. At 97.9 points, it is now at its lowest level since 2020, indicating rising unemployment. The employment component falls by 0.7 points to its current level of 101.5. The employment outlook is thus still in the green zone, but assessments are becoming more cautious. In most participating countries in Europe, the outlook clouded over in August, in some cases quite significantly. "For a long time, the European labour markets did well in times of crisis. But now it's about time for an economic turnaround," says Enzo Weber, IAB head of forecast.
European Labour Market Barometer: Outlook continues to deteriorate
The European Labour Market Barometer falls below the neutral mark of 100 points for the first time this year.