Employment in the euro area increased by 1.2% in the fourth quarter of 2023 when compared with the same quarter of the previous year, according to data from Eurostat, the statistical office of the European Union. At the same time, employment ticked up by 1.0% in the EU.

The annual growth in both the euro area and EU comes after an annual increase of 1.4% in the euro area and 1.2% in the EU in the third quarter of 2023.

When compared to the previous quarter, the number of employed persons increased by 0.3% in the euro area and by 0.2% in the EU in the fourth quarter of 2023.

Further data by Eurostat showed that when compared with the same quarter of the previous year, the hours worked increased by 0.7% in the euro area and by 0.4% in the EU. Hours worked increased by 0.1% in the euro area and by 0.2% in the EU in the fourth quarter of 2023, compared with the previous quarter.

Based on seasonally adjusted figures, Eurostat estimates that in the fourth quarter of 2023, 217.1 million people were employed in the EU, of which 169.3 million were in the euro area.

Full year figures showed that for the year 2023 as a whole, the number of persons employed increased by 1.4% in the euro area and by 1.2% in the EU, after +2.3% and +2.0% respectively in 2022.

Meanwhile, when compared with the same quarter of the previous year, the seasonally adjusted GDP increased by 0.1% in the euro area and by 0.2% in the EU in the fourth quarter of 2023.

In the fourth quarter of 2023, seasonally adjusted GDP remained stable in both the euro area and the EU, compared with the previous quarter.

For the year 2023 as a whole, GDP increased by 0.4% in both the euro area and the EU, after +3.4% in both zones in 2022.

The combination of GDP and employment data allows an estimation of labour productivity.

In the fourth quarter 2023, productivity based on persons decreased by 1.1% in the euro area and by 0.8% in the EU compared to the same quarter of the previous year. Based on hours worked, productivity compared with the same quarter of the previous year decreased by 1.2% in the euro area and by 0.7% in the EU.