Statistics Explained

Urban-rural Europe - labour market


Data extracted: October 2022.

Planned article update: December 2024.

Highlights


The EU’s activity rate for working-age people (20–64 years) was 78.5 % in 2021; the highest rates were recorded for those living in cities (79.3 %), with lower rates for people living in rural areas (78.0 %) or in towns and suburbs (77.8 %).

By degree of urbanisation, the lowest unemployment rates in the EU in 2021 were recorded for people living in rural areas (5.9 %), with somewhat higher rates for those living in towns and suburbs (6.9 %) and, in particular, cities (7.8%).

In 2021, the working-age population (defined here as those aged 20–64 years) of the European Union (EU) numbered 259.5 million. The labour force within this age range was composed of 203.6 million people, while 55.9 million were outside the labour force, in other words they were economically inactive. This latter cohort is largely composed of students, pensioners, people caring for other family members, as well as volunteers and those unable to work because of long-term sickness or disability. The EU labour force aged 20–64 years was composed of 189.7 million employed persons and 13.9 million people who were not employed but were actively seeking and available for work, in other words unemployed persons.

Source: Eurostat (lfst_r_pgauwsn)

Almost four out of every five (79.6 %) men aged 20–64 years who were living in rural areas of the EU in 2021 were employed. This was higher than the corresponding shares recorded among men living in towns and suburbs (78.9 %) and in cities (77.5 %). For each degree of urbanisation, the proportion of men in employment was always higher than the proportion of women in employment. In contrast to the pattern observed for men, the highest proportion of women in employment was recorded among those living in cities (69.0 %), while the highest shares of women outside the labour force were in towns and suburbs (28.5 %).

This article forms part of Eurostat’s sister publications on Rural Europe and Urban Europe. The statistics presented are sourced from the European labour force survey (EU-LFS).

Full article

Activity rates

The labour force, also referred to as the economically active population, comprises those persons who are employed or unemployed. The activity rate is the percentage of active persons (within a specified age range) in relation to the total population (of the same age). The activity rate is one of the secondary indicators for fair working conditions within the European pillar of social rights.

In 2021, the EU’s activity rate for working-age people (20–64 years) was 78.5 %. The highest activity rate among people of this age was recorded for those living in cities (79.3 %), with rates for rural areas (78.0 %) and towns and suburbs (77.8 %) slightly lower than the average for the whole of the EU territory; see Figure 1.

During the period 2012–2021, there was a general upward development for the EU’s activity rate for working-age people. Indeed, there were annual increases every year during the period under consideration, except for 2020 (when the COVID-19 crisis resulted in falling rates); note that due to a break in series, data for 2021 are not fully comparable with previous years.

Figure 1: Activity rate (20–64 years) by degree of urbanisation, EU, 2012–2021
(%)
Source: Eurostat (lfst_r_arednu)

In 2021, the highest activity rates for working-age people (of both sexes) across the EU Member States were recorded in Sweden, the Netherlands and Estonia. The highest activity rates among working-age men were in Sweden, Malta and Czechia, while the highest rates among working-age women were in Sweden, Lithuania and Estonia.

A more detailed analysis reveals that the highest activity rates for all working-age people (men and women together) were generally recorded among those living in cities; this was the case in 18 out of 27 EU Member States; see Figure 2. The exceptions included: Sweden, Denmark and Belgium, where the highest activity rates were recorded for people living in towns and suburbs; and the Netherlands, Germany, Malta, Finland, Austria and France, where the highest activity rates were recorded for people living in rural areas.

Figure 2: Activity rate (20–64 years) by sex and degree of urbanisation, 2021
(%)
Source: Eurostat (lfst_r_arednu)


There was an 11.1 percentage points difference between activity rates of working-age men and women in the EU (with higher rates for men) in 2021. This gender gap was less pronounced in cities (9.1 points) than it was in rural areas (12.4 points) or in towns and suburbs (12.6 points). Across the EU Member States, Malta had the largest gender gap among those living in cities (20.4 points), while the gap was relatively small in Lithuania (2.2 points). The gender gap was even wider for those living in towns and suburbs (25.0 points) and rural areas (30.6 points) of Romania, while the smallest gender gaps were recorded in Lithuania and Finland (both 2.6 points for towns and suburbs and 3.1 points for rural areas).

Employment

The employment rate is the percentage of employed people (within a specified age range) in relation to the total population (of the same age). The employment rate is one of the headline indicators for fair working conditions within the European pillar of social rights.

The EU employment rate for working-age people (20–64 years) is cyclical, with rates generally rising in the second and third quarter of each year; this pattern is particularly pronounced in rural areas (see Figure 3). Between 2013 and 2019, employment rates by degree of urbanisation followed an upward development. However, the COVID-19 crisis had a considerable impact on labour markets in 2020: some people were placed on furlough schemes [1], others were made unemployed and some self-employed persons lost their income in part or full. The initial impact of the crisis resulted in the EU employment rate for cities falling at a faster pace (than that for towns and suburbs or rural areas). The asymmetric nature of the crisis was also apparent insofar as it impacted particular groups, for example, younger people, temporary employees, those in precarious employment, or those working in leisure, hospitality and transport-related activities. In 2021, there was a recovery in employment rates for each degree of urbanisation, as rates rose above their pre-crisis levels; note that due to a break in series, data for 2021 are not fully comparable with previous years.

Figure 3: Quarterly employment rate (20–64 years) by degree of urbanisation, EU, Q1-2012–Q2-2022
Source: Eurostat (lfsq_pgauws)

In 2021, the EU’s employment rate for working-age people (20–64 years) stood at 73.1 %. There were relatively small differences in employment rates by degree of urbanisation, with a peak of 73.6 % recorded for people living in rural areas, while the lowest rate was 72.6 % for people living in towns and suburbs; see Figure 4. An analysis by sex and degree of urbanisation reveals that the highest male employment rate was recorded for men living in rural areas (79.6 % across the EU), while the lowest rate was registered for those living in cities (77.5 %). A different pattern existed for women, insofar as the highest employment rate was recorded for women living in cities (69.0 %) and the lowest for those living in towns and suburbs (66.3 %).

Figure 4: Employment rate (20–64 years) by sex and degree of urbanisation, 2021
(%)
Source: Eurostat (lfst_r_ergau)


Across the EU Member States, the highest employment rate for people (both sexes) living in cities was recorded in Lithuania (82.4 %), while the lowest was in Italy (62.4 %). The range between the highest and lowest rates was even wider for towns and suburbs and for rural areas. The employment rate for people living in towns and suburbs peaked in the Netherlands at 84.1 %, some 22.4 points higher than the rate in Greece (61.7 %). The Netherlands also recorded the highest employment rate for people living in rural areas (84.6 %), which was 25.0 points higher than in Romania (59.6 %).

The EU’s gender employment gap was 10.8 percentage points in 2021 (with a higher employment rate for men than for women). By degree of urbanisation, the smallest gap was recorded for people living in cities (8.5 points), while the largest gap (12.6 points) was recorded for those living in towns and suburbs; see Figure 5. The gender employment gap is one of the headline indicators for equal opportunities within the European pillar of social rights.

Male employment rates were consistently higher than female employment rates in 2021, with this pattern repeated for each of the EU Member States and all three degrees of urbanisation. In 20 out of 27 Member States, the smallest gender employment gaps were registered among people living in cities; this was most notably the case in Romania, where the gender gap in cities was 11.0 percentage points, compared with gaps of 23.0 and 28.2 percentage points, respectively, in towns and suburbs and in rural areas. The smallest gender employment gaps in Bulgaria and Latvia were recorded for people living in towns and suburbs, while in Malta, France, Belgium, Estonia and Finland, the smallest gender employment gaps were recorded for people living in rural areas.

Figure 5: Gender employment gap (20–64 years) by degree of urbanisation, 2021
(percentage points)
Note: the gender gap is measured as the employment rate for men (aged 20–64 years) minus the corresponding rate among women.
Source: Eurostat (tepsr_lm230)


Figures 6 and 7 provide a more detailed picture of employment rates, introducing an analysis by age. The lowest employment rates were recorded for people aged 15–24 years, many of whom continue to pursue full-time education. Rates generally peaked for people aged 25–54 years before tailing off among those aged 55–64 years (when early retirement, among others, may result in people leaving the labour market).

The EU employment rate was higher for females living in cities than it was for females living in rural areas for all three age categories presented in Figure 6. The difference in rates was generally quite small, with the biggest difference registered for the employment rate of older women (55–64 years): 56.3 % for women living in cities and 3.6 percentage points lower in rural areas (52.7 %).

Figure 6: Female employment rate by age and degree of urbanisation, 2021
(%)
Source: Eurostat (lfst_r_ergau)


Figure 7: Male employment rate by age and degree of urbanisation, 2021
(%)
Source: Eurostat (lfst_r_ergau)

In contrast to the situation observed for females, there were bigger differences in employment rates for males. In 2021, the employment rate was 39.7 % for young males (15–24 years) living in rural areas of the EU, which was 7.7 percentage points higher than the corresponding rate for young males living in cities. This pattern – a higher employment rate for people living in rural areas – was repeated among men aged 25–54 years, where the employment rate for rural areas was 2.8 points higher than that for cities. By contrast, and in keeping with the situation observed for older women, the employment rate for older men (55–64 years) living in cities was higher than the employment rate for older men living in rural areas.

As noted above, employment rates across the EU tended to rise during the most recent decade for which data are available; note this may, at least in part, reflect a relatively low starting point (in the aftermath of the global financial and economic crisis). Between 2012 and 2021, the EU employment rate for working-age people (20–64 years) rose by 5.5 percentage points; it stood at 73.1 % at the end of this period; note that due to a break in series, data for 2021 are not fully comparable with previous years.

Figure 8: Employment rate (20–64 years) by degree of urbanisation, 2012 and 2021
(%)
Source: Eurostat (lfst_r_ergau)

EU employment rates for working-age people increased for each degree of urbanisation between 2012 and 2021. Somewhat larger increases were recorded for rural areas (where rates were up 6.1 percentage points) and cities (up 5.9 points), while more modest growth was recorded in towns and suburbs (up 4.5 points); see Figure 8. This pattern – increasing employment rates – was repeated in every EU Member State and for all three degrees of urbanisation, with one exception. The employment rate of working-age people living in rural areas of Romania was 7.1 percentage points lower in 2021 than it had been in 2012. Note, however, that due to changes in survey methodology that came into force in 2021, there is a break in the time series. In Romania, the most notable change concerned the exclusion from the labour force of persons producing agricultural goods intended exclusively for self-consumption; this may, at least in part, explain the considerable changes observed, in particular for employment in rural areas.

Figure 9 provides a further analysis of employment rates, contrasting rates for national and foreign citizens. Across the whole of the EU, the employment rate for working-age national citizens (20–64 years) stood at 74.0 % in 2021, which was 9.3 percentage points higher than the corresponding rate for foreign citizens (living in EU Member States). This pattern was repeated in cities (where a slightly larger gap existed) and in rural areas (where the employment rate for foreign citizens was 7.0 points below that for nationals).

In Bulgaria, Germany, Sweden, France, Finland, the Netherlands and Hungary, the employment rate of national citizens living in cities was more than 10.0 percentage points above the corresponding rate for foreign citizens in 2021. This pattern – the employment rate of national citizens being more than 10.0 percentage points above the corresponding rate for foreign citizens – was repeated across the rural areas of Sweden, the Netherlands, Latvia, Croatia, France and Estonia. While employment rates were generally lower for foreign citizens (than for nationals) in most of the EU Member States, there were some exceptions:

  • the employment rates of foreign citizens living in cities and in rural areas were higher than rates for national citizens in Czechia and Luxembourg;
  • the employment rate of foreign citizens living in cities was higher than the rate for national citizens in Malta, Poland, Ireland and Italy;
  • the employment rate of foreign citizens living in rural areas was higher than the rate for national citizens in Portugal, Cyprus and Hungary.
Figure 9: Employment rate (20–64 years) by citizenship and degree of urbanisation, 2021
(%)
Source: Eurostat (lfst_r_erednu)

Employment by job tenure (in other words, the duration spent in the same job) is one of the secondary indicators for fair working conditions within the European pillar of social rights. In 2021, around three fifths (60.5 %) of the EU’s working-age population (20–64 years) who were employed had been in their current job for at least five years. This figure was higher among people living in rural areas (63.3 %) and towns and suburbs (62.3 %), than it was among people living in cities (57.4 %). By contrast, working-age people living in cities were more likely (than those living in other areas) to have been in their job for less than 12 months.

Figure 10: Employment (20–64 years) by job tenure and degree of urbanisation, 2021
(% share of total employment)
Source: Eurostat (lfst_r_egadu)


Figure 11: Self-employment (20–64 years) by professional status and degree of urbanisation, 2021
(% share of total employment)
Source: Eurostat (lfst_r_e2sgacu)

The share of people employed in their current job for at least five years was higher for working-age people living in rural areas (compared with those living in cities) in most of the EU Member States (21 out of 27 in 2021). The exceptions were predominantly eastern EU Member States (Romania, Bulgaria, Hungary, Slovakia, Croatia); they were joined by Italy. In Luxembourg, Finland, Austria, Germany, Denmark, Greece, Ireland and Belgium, the share of working-age people living in rural areas who had been in their current job for at least five years was more than 10.0 percentage points higher than the corresponding share for people living in cities.

The professional status of working-age people (20–64 years) may be analysed in relation to self-employment. In 2021, there were 25.1 million self-employed persons in the EU within this age cohort; 8.0 million of them were self-employed persons with employees (employers) and 17.2 million were own-account workers. Figure 11 shows the relative importance of self-employment in relation to the total number of persons employed. Across the EU, the share of the self-employed in total employment was 13.2 %.

Self-employment generally accounted for a higher share of total employment among people living in rural areas (compared with those living in cities). In 2021, some 16.3 % of working-age people in the EU living in rural areas were self-employed, which was 4.7 percentage points higher than the corresponding rate for people living in cities. Slovenia, Hungary and Luxembourg were the only EU Member States (incomplete data for Malta) to report a higher share of self-employment among people living in cities.

The gender gap in part-time employment is one of the secondary indicators for equal opportunities within the European pillar of social rights. There were 32.6 million working-age people (20–64 years) employed on a part-time basis within the EU in 2021; the vast majority (24.9 million) were women.

Across the EU, more than one in six people (17.2 %) aged 20–64 years was employed on a part-time basis in 2021. The relative importance of part-time work was considerably higher among women (28.3 % of those employed) than it was among men (7.6 %). Part-time employment rates (both sexes combined) were higher for those living in towns and suburbs (17.8 %) and cities (17.7 %) than they were for people living in rural areas (15.6 %). Across the EU Member States, it was relatively common to find that female part-time employment rates were higher in rural areas (than they were in cities), whereas male part-time employment rates tended to be higher in cities (than they were in rural areas).

Figure 12: Part-time employment (20–64 years) by sex and degree of urbanisation, 2021
(% share of total employment)
Source: Eurostat (lfst_r_e2pgaedcu)

In 2021, there were 21.2 million fixed-term employees (sometimes referred to as temporary employees) of working age (20–64 years) in the EU; this equated to 13.0 % of all employees. The share of fixed-term employees within the total number of employees was higher among people with a relatively low level of educational attainment, in other words, people with no more than a lower secondary level of attainment (as defined by the international standard classification of education (ISCED) level 2).

In the EU, the share of fixed-term employees in the total number of employees was broadly similar for people with a low level of educational attainment in 2021, irrespective of whether they lived in cities (18.8 %) or rural areas (18.9 %). By contrast, the share of fixed-term employees with a tertiary level of educational attainment (ISCED levels 5–8) was higher among those living in cities (13.5 %) than it was for those living in rural areas (9.9 %).

In 2021, some of the highest shares of fixed-term employees (for all education levels) were recorded in Spain and the Netherlands, and to a lesser extent in Portugal, Italy, Finland and Poland. Looking in more detail (and subject to data availability – see Figure 13 for data coverage), fixed-term employees accounted for more than one quarter of all employees:

  • with a low level of educational attainment living in the cities of Poland, Sweden, Spain and Croatia;
  • with a low level of educational attainment living in the rural areas of Spain, Cyprus, Poland, Hungary and Sweden.
  • with a tertiary level of educational attainment living in the cities of the Netherlands;
  • with a tertiary level of educational attainment living in the rural areas of Spain and Portugal.
Figure 13: Fixed-term employees (20–64 years) by educational attainment and degree of urbanisation, 2021
(% share of total employees)
Source: Eurostat (lfst_r_e2tgaedcu)

The COVID-19 crisis had a considerable impact on EU labour markets. During the crisis, a large proportion of the labour force was faced with changing patterns of work. For many, this meant working from home or accepting a temporary lay-off, in other words reducing (partly or completely) their working time for technical or economic reasons; sometimes this was supported by government schemes designed to encourage employers to retain their workforce. The extent of working from home reflected, at least to some degree, the economic structure of local economies, with greater opportunities for homeworking among people employed in professional, financial, information and communication, education and government sectors. By contrast, there were fewer opportunities for homeworking among people employed, for example, in agriculture, manufacturing, construction or distributive trades.

In 2021, more than 1 in 10 (13.5 %) working-age people (20–64 years) employed in the EU usually worked from home, another 10.7 % sometimes worked from home. Within the labour force survey, people usually working from home are defined as those who worked at least half of their total working hours from home during a reference period of 4 (up to 12) weeks. By degree of urbanisation, the highest share of the EU workforce usually working from home was recorded among those living in cities (17.8 %), followed by people living in towns and suburbs (11.4 %) and in rural areas (9.5 %).

Figure 14 shows that persons with a tertiary level of educational attainment were considerably more likely (than those with medium or low levels of educational attainment) to have usually worked from home in 2021; this was most notably the case for the workforce living in cities. In Ireland (58.0 %) and in Luxembourg (53.2 %), a majority of the workforce with a tertiary level of educational attainment and living in a city usually worked from home in 2021.

Figure 14: Employed persons (20–64 years) usually working from home by educational attainment and degree of urbanisation, 2021
(% share of total employment)
Source: Eurostat (Labour force survey)

The share of employed people (aged 20–64 years) usually working from home in the EU was 8.0 percentage points higher in 2021 than in 2019, reflecting the impact of the COVID-19 crisis. There was a more rapid uptake of working from home among those living in cities (up 11.8 points); this was almost three times as high as the increase recorded among people living in rural areas (up 4.0 points).

This pattern – a larger increase between 2019 and 2021 in the share of people usually working from home in cities – was repeated in most of the EU Member States. There were only four exceptions – Greece, Latvia, Malta (incomplete data) and Slovenia – where the largest increase was recorded for those living in towns and suburbs. The most rapid expansions between 2019 and 2021 in the share of people usually working from home were recorded among those living in the cities of Ireland (up 38.8 points), Luxembourg (36.6 points) and Sweden (27.6 points).

Figure 15: Employed persons (20–64 years) usually working from home by degree of urbanisation, 2019 and 2021
(% share of total employment)
Source: Eurostat (Labour force survey)

Unemployment

Unemployment can have a bearing not just on the macroeconomic performance of a country (lowering productive capacity) but also on the well-being of individuals without work and their families. The personal and social costs of unemployment are varied and include a higher risk of poverty and social exclusion, debt or homelessness, while the stigma of being unemployed may have a potentially detrimental impact on (mental) health.

The unemployment rate is one of the headline indicators for fair working conditions within the European pillar of social rights. The unemployment rate is the number of unemployed persons, expressed as a share relative to the labour force (the sum of employed and unemployed persons), in other words, the denominator does not include persons who are outside of the labour force, for example, they could be full-time students, those who do not want to or cannot work, or retired persons. In 2021, the EU’s unemployment rate for people aged 15–74 years stood at 7.0 %; this was slightly lower than a year before (down 0.1 percentage points), but remained higher than the pre-COVID-19 rate of 6.7 % in 2019; note that due to a break in series, data for 2021 are not fully comparable with previous years.

By degree of urbanisation, the lowest unemployment rates in the EU in 2021 were recorded for people living in rural areas (5.9 %), with somewhat higher rates for those living in towns and suburbs (6.9 %) and, in particular, cities (7.8 %). This pattern – the lowest unemployment rate for rural areas and the highest for cities – was repeated for both sexes, with female unemployment rates at a higher level (than male rates) for each degree of urbanisation.

In 2021, the unemployment rate for people living in cities peaked among the EU Member States at 14.4 % in Spain, while double-digit rates were also recorded in Greece, Italy, Austria and Belgium. The highest unemployment rates for people living in towns and suburbs and in rural areas were recorded in Greece and Spain; none of the remaining Member States had double-digit rates in these areas.

In approximately half of the EU Member States, the highest unemployment rate in 2021, by degree of urbanisation, was recorded for people living in cities (note there are no data available for rural areas in Malta). There were however several exceptions:

  • in Czechia, the joint highest unemployment rate was people living in cities and those in towns and suburbs;
  • in Estonia, Ireland, Greece, Spain, Croatia, Cyprus and Luxembourg, the highest unemployment rate was recorded for people living in towns and suburbs;
  • in Lithuania, the joint highest unemployment rate was people living in towns and suburbs and those in rural areas;
  • in Bulgaria, Latvia, Hungary, Poland, Romania and Slovakia, the highest unemployment rate was recorded for people living in rural areas.

Figure 16: Unemployment rate (15–74 years) by sex and degree of urbanisation, 2021
(% share of labour force)
Note: missing information is due to low reliability.
Source: Eurostat (lfst_r_urgau)


Figure 17 provides an analysis of the change in unemployment rates between 2012 and 2021. Note that unemployment rates were relatively high in 2012 (in the aftermath of the global financial and economic crisis and the sovereign debt crisis) and that due to a break in series, data for 2021 are not fully comparable with previous years. During the period under consideration, the EU unemployment rate fell by 4.5 percentage points among people living in rural areas. This was at a somewhat faster pace than the reductions recorded among people living in cities (down 4.0 points) and people living in towns and suburbs (down 3.2 points).

Unemployment rates fell in the vast majority of EU Member States between 2012 and 2021 for each degree of urbanisation; this was particularly the case in those economies most severely impacted by the earlier crises. There were, however, a number of exceptions, with unemployment rates rising for people living in:

  • Austria and Sweden (all three degrees of urbanisation);
  • towns and suburbs and in rural areas of Luxembourg;
  • rural areas of Romania;
  • the cities of Finland.
Figure 17: Unemployment rate (15–74 years) by degree of urbanisation, 2012 and 2021
(% share of labour force)
Source: Eurostat (lfst_r_urgau)

Across the whole of the EU, the unemployment rate for national citizens (aged 15–74 years) was 6.5 % in 2021, while the rate for foreign citizens was twice as high (at 13.0 %). This pattern – higher unemployment rates for foreign citizens than national citizens – was repeated for all three degrees of urbanisation; see Figure 18.

Across the 20 EU Member States for which data are available in 2021, unemployment rates for foreign citizens living in cities were generally higher than the corresponding rates for national citizens. The biggest gaps for these two rates were recorded in Sweden (13.0 percentage points), Greece (10.6 points), Spain and Finland (both 9.2 points). While unemployment rates for people living in cities were generally higher for foreign citizens (than for nationals), there were two exceptions: Malta and Ireland.

A similar picture could be observed in the 14 EU Member States for which data are available for rural areas. In 2021, unemployment rates for foreign citizens living in rural areas were generally higher than those for national citizens. The biggest gaps were recorded in Sweden (19.5 percentage points), Greece and Spain (both 9.5 points). While unemployment rates for people living in rural areas were generally higher for foreign citizens (than for nationals), Czechia was an exception.

Figure 18: Unemployment rate (15–74 years) by citizenship and degree of urbanisation, 2021
(% share of labour force)
Source: Eurostat (lfst_r_lfur2ganu)

The youth unemployment rate in the EU has traditionally been slightly more than twice as high as the overall unemployment rate. This rate forms one of the secondary indicators for fair working conditions within the European pillar of social rights.

In 2021, the EU’s youth unemployment rate (defined here as covering young people aged 15–24 years) was 16.6 %, while the overall unemployment rate (for people aged 15–74 years) was 7.0 %. Youth unemployment in the EU was particularly concentrated in cities, where the unemployment rate stood at 18.2 %, compared with 16.3 % for towns and suburbs, and 14.6 % in rural areas. This pattern of the highest youth unemployment rate being recorded for people living in cities was repeated in 12 of the EU Member States (while in Denmark, joint highest rates were recorded for young people living in cities and in towns and suburbs). By contrast, the highest youth unemployment rates in Greece, Bulgaria, Estonia, Hungary and Poland were recorded in rural areas.

Youth unemployment covered more than one third of the labour force aged 15–24 years in 2021 in:

  • the cities and the towns and suburbs of Spain (for both males and females);
  • the cities of Italy (for both males and females);
  • rural areas (for both males and females) and the towns and suburbs (only females) of Greece.

Figure 19: Youth unemployment rate (15–24 years) by sex and degree of urbanisation, 2021
(% share of labour force)
Note: missing information is due to low reliability.
Source: Eurostat (lfst_r_urgau)


There has been a notable decrease in the EU’s youth unemployment rate during the last decade; it fell from 23.7 % in 2012 to 16.6 % in 2021; note that due to a break in series, data for 2021 are not fully comparable with previous years. Figure 20 shows the largest reduction in youth unemployment rates by degree of urbanisation was for young people living in rural areas, down 8.6 percentage points during the period under consideration. Youth unemployment rates also fell in cities (down 7.0 points) and in towns and suburbs (down 6.1 points).

Between 2012 and 2021, youth unemployment rates fell systematically across all three degrees of urbanisation for most EU Member States. The only exceptions were:

  • Austria, where the youth unemployment rate rose by a small margin in towns and suburbs and in cities, and by a somewhat larger amount in rural areas;
  • Luxembourg and Sweden, where the youth unemployment rate rose by a relatively large margin in cities (up by 5.0 and 4.3 percentage points, respectively);
  • Romania, where the youth unemployment rate rose by a notable margin (up 8.0 points) in rural areas, contrary to relatively large decreases for towns and suburbs and, in particular, cities. Note, however, that due to changes in survey methodology that came into force in 2021, there is a break in the time series. In Romania, the most notable change concerned the exclusion from the labour force of persons producing agricultural goods intended exclusively for self-consumption; this may, at least in part, explain the considerable changes observed, in particular for unemployment in rural areas.
Figure 20: Youth unemployment rate (15–24 years) by degree of urbanisation, 2012 and 2021
(% share of labour force)
Source: Eurostat (lfst_r_urgau)

Source data for tables and graphs

Context

There are six European Commission priorities for 2019–2024, including the creation of ‘An economy that works for people’, whereby the EU seeks to create a more attractive investment environment, and growth that creates quality jobs, especially for young people and small businesses. Some of the principal challenges outlined by President von der Leyen include: fully implementing the European pillar of social rights; ensuring that workers have at least a fair minimum wage; promoting a better work-life balance; tackling gender pay gaps and other forms of workplace discrimination; getting more disabled people into work; and protecting people who are unemployed.

On 4 March 2021, the European Commission set out its ambition for a stronger social EU to focus on jobs and skills, to lead to a fair, inclusive and resilient socioeconomic recovery from the COVID-19 crisis. The European pillar of social rights action plan (COM(2021) 102 final) outlines a set of specific actions and headline targets for employment, skills and social protection in the EU. It includes a benchmark for the employment rate, namely that – by 2030 – at least 78 % of people aged 20–64 years should be in employment.

Also early in March 2021, the European Commission presented a Recommendation (EU) 2021/402 of 4 March 2021 on an effective active support to employment following the COVID-19 pandemic (EASE) (C(2021) 1372 final). This sought to provide guidance on policy measures that are backed by EU funding to encourage job creation and job transitions in the aftermath of the COVID-19 crisis, notably within the green and digital economies. Measures outlined in the recommendation are eligible for support from the Recovery and Resilience Facility (RRF), as well as a number of other EU funds including the European Social Fund Plus (ESF+).

Notes

  1. ↑ Also known by other names, such as temporary lay-off or technical unemployment. In a furlough scheme, for a fixed or open-ended period of time employees are not required to work but are not made unemployed. Depending on the details of specific schemes: the workers receive full, reduced or no pay; the employers receive full, partial or no financial support from public authorities. Furlough schemes help employers to retain employees during economically difficult times, with the intention of the employees returning to work for the same employer at the end of the scheme.

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