Employment Trends in the EU and CEE Region
In February, Serbia experienced a notable 9.7% year-on-year increase in real wage growth, reflecting positive economic momentum. Meanwhile, Hungary reported an unemployment rate of 4.4%, indicating relative stability in the labor market. In Slovakia, producer prices saw a significant annual decrease of 15%.
Later today at 10:30 AM CET, Slovenia is set to publish retail sales growth figures for March.
EU Employment Statistics for 2023
In 2023, over 75% (195.7 million) of individuals aged 20 to 64 in the European Union (EU) were employed—the highest proportion recorded since data collection began in 2009. The Netherlands, Sweden, and Estonia registered the highest employment rates among EU countries, while Italy, Greece, and Romania reported the lowest rates. Notably, employment rates in Croatia and Romania fall below the EU average for both genders.
Looking at the Central and Eastern European (CEE) region, employment rates exceed the EU average in most countries, with Czechia notably standing out with a high male employment rate of 88.4%. However, there remains a persistent 10-percentage-point gap between male and female employment rates across the region. Comparing to the EU’s highest employment rate in the Netherlands, CEE countries still have room to increase total employment, with Czechia and Hungary having potential for a modest increase, and Poland, Slovakia, Slovenia, and Romania showing potential for more significant gains.
Market Movements
This week saw the Czech koruna and Hungarian forint strengthening against the euro, while the Polish zloty experienced marginal weakness. In the bond market, long-term yields decreased slightly in Hungary and Poland. The Czech government announced a lower-than-planned fiscal consolidation for 2025 due to upcoming parliamentary elections. Romania successfully held auctions for government papers maturing in 2026 and 2033, enjoying solid demand from investors.
