The Organization for Economic Co-operation and Development (OECD) announced today that unemployment rates have reached record lows in the European Union (5.7%) and the eurozone (6.1%).
Compared to January, February’s unemployment rates remained unchanged in 22 OECD countries, decreased in seven, and increased in the Czech Republic and Finland, predominantly affecting women.
Unemployment rates stayed generally stable in Canada at 6.7% and in the United States at 4.2% in March.
In February 2025, the OECD unemployment rate remained broadly stable for both women and men, as well as for younger workers and employees aged 25 and over.
The OECD also reported that employment and labor force participation (LFP) rates remained stable at 70.2% and 73.9% respectively in the fourth quarter of 2024, close to the peaks recorded in the previous quarter.
According to the OECD, these indicators were at or near record highs in 11 out of 38 OECD countries, including Germany, Japan, and Turkey.
During the fourth quarter of 2024, the employment rate exceeded the OECD average of 70.2% in two-thirds of the OECD countries.
Among G7 nations, employment rates in Italy and France remained below the OECD average, while Turkey continued to have the lowest employment rate at 55.2%.
Conversely, employment rates exceeded 80% in Switzerland, the Netherlands, and Iceland.
Employment rates held steady in 14 OECD countries compared to the previous quarter, fell in 15, and rose in nine.
Labor force participation rates for individuals aged 15 to 64 surpassed the OECD average of 73.9% in nearly three-quarters of OECD countries in the fourth quarter of 2024.
Turkey, Mexico, and Italy recorded the lowest rates.
For the entire year of 2024, the OECD employment rate was slightly higher than in 2023, by 0.2 percentage points, driven mainly by an increase in labor force participation. In the euro area, the employment rate increased by 0.4 percentage points, reflecting both lower unemployment rates and higher participation rates.
The most significant annual increases in the employment rate were recorded in Greece (up by 1.5 percentage points), Iceland (up by 1.6 percentage points), and Costa Rica (up by 2.4 percentage points), primarily due to increased labor force participation, particularly in Iceland.
In some countries, including Germany and the United States, the increase in labor force participation was almost entirely offset by a rise in the unemployment rate, resulting in little or no change in the employment rate.
In contrast, New Zealand, Finland, and Canada experienced a decline in the employment rate of over 1.0 percentage point, driven by rising unemployment and falling participation rates.
