Europe’s labour market is still expanding, but new data show that employment growth has slowed sharply, with gains concentrated in a few countries while Turkey, Hungary and Germany recorded notable declines between the first quarters of 2025 and 2026.
Key Highlights
- European employment rose by only 332,000 workers, or 0.14%, to 239.2 million.
- Spain recorded the largest gain, adding 430,000 workers.
- Turkey suffered the biggest decline, losing 392,000 employed people.
- The Netherlands, Germany and France accounted for most vacancies advertised through EURES.
- Analysts warn that Europe may be entering a more fragmented phase of employment growth.
The data, compiled from Eurostat employment figures and European Employment Services (EURES) vacancy data by BestBrokers, covered 33 European countries. Employment among people aged 20 to 64 increased from 238.9 million in Q1 2025 to 239.2 million in Q1 2026.
Spain emerged as Europe’s strongest employment performer, adding 430,000 jobs, representing a 2.01 per cent increase. France followed with 142,000 additional workers, while Poland added 122,000.
Portugal also recorded strong growth, with employment rising by 82,000, or 1.66 per cent. Cyprus posted the fastest percentage increase at 2.52 per cent, followed by Malta at 2.22 per cent.
The picture was sharply different in Turkey, where employment fell by 392,000, a 1.32 per cent decline. Hungary lost 61,000 workers, while Germany recorded a decline of 32,000.
Other countries reporting employment declines included Serbia, Slovakia, Italy, Bulgaria, Denmark, the Netherlands and Finland.
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Despite the slowdown in employment growth, demand for workers remains substantial. The Netherlands recorded nearly 2.8 million vacancies advertised through EURES during the period analysed, followed by Germany with 2.4 million and France with more than two million.
Alan Goldberg, lead data analyst at BestBrokers, said the figures suggested that Europe’s previously broad-based employment growth was becoming increasingly uneven.
“The latest figures suggest that the era of broad-based employment growth may be giving way to a more fragmented landscape, where some economies continue to move forward while others are already slipping backwards,” Goldberg said.
He said the development did not necessarily signal an immediate employment crisis, but warned that subdued economic growth could make employers more cautious about hiring.
For workers, Goldberg said the next phase could favour countries and occupations where labour demand remains strong, while workers in weaker economies could face fewer opportunities and greater competition.
The report suggests that Europe’s labour market remains resilient, but the widening gap between countries could become a defining feature of employment trends in the coming months.
