Urban-rural Europe - labour market

Data extracted: May 2024.

Planned article update: September 2026.

Highlights

In 2023, the working-age population (defined here as people aged 20–64 years) of the European Union (EU) numbered 259.9 million. The labour force within this age range was composed of 207.8 million people, while 52.0 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 195.7 million employed people and 12.1 million unemployed people (who weren’t employed, but were actively seeking and available for work).

More than 4 out of every 5 (81.0%) men aged 20–64 years who were living in rural areas or in towns and suburbs (80.7%) of the EU in 2023 were employed. This was somewhat higher than the corresponding share recorded among men living in cities (79.9%).

For each degree of urbanisation, the proportion of men in employment in 2023 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 (71.4%). For both men and women, the lowest shares of people outside the labour force were observed among those living in cities (14.7% for men and 23.6% for women).

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

What is the composition of the EU’s working-age population?
(20–64 years, 2023)
Source: Eurostat (lfst_r_pgauwsn)

Activity rates

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

In 2023, the EU’s activity rate for working-age people (20–64 years) was 80.0%. The highest activity rate among people of this age was recorded for those living in cities (80.8%), with rates for rural areas (79.5%) and towns and suburbs (79.4%) slightly lower than the average for the whole of the EU territory; see Figure 1.

During the period 2013–23, there was a general upward development for the EU’s activity rate for working-age people, punctuated by the COVID-19 crisis in 2020; note also that due to a break in series, data for 2021 and onwards aren’t fully comparable with previous years. The EU’s activity rate increased every year, except 2020, for all 3 degrees of urbanisation; the most rapid annual increases were recorded post-COVID.

Over the latest decade for which information is available (2013–23), the EU’s activity rate for working-age people increased 4.3 percentage points among those living in cities, 4.0 points for those living in rural areas, and 3.6 points for those living in towns and suburbs.

Figure 1: Activity rate (20–64 years), by degree of urbanisation, EU, 2013–23
(%)
Source: Eurostat (lfst_r_arednu)

In 2023, the highest activity rates for working-age people (of both sexes) across the EU countries were recorded in Sweden, Estonia and the Netherlands. The highest activity rates among working-age men were in Malta, Sweden and Czechia, while the highest rates among working-age women were in Estonia, Sweden and Lithuania.

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 countries; see Figure 2. The exceptions included

Cyprus, the Netherlands and Sweden, where the highest activity rates were recorded for people living in towns and suburbs
Germany, France, Malta, Austria and Finland, where the highest activity rates were recorded for people living in rural areas
Belgium, where the highest activity rates were jointly recorded for people living in towns and suburbs and for people living in rural areas.

In 2023, there was a 10.4 percentage points difference between activity rates of working-age men and women in the EU (with higher rates for men). This gender gap was less pronounced in cities (8.9 points) than it was in rural areas (11.3 points) or in towns and suburbs (11.5 points).

Across the EU countries, Italy had the largest gender gap among people living in cities (17.4 points), while the gap was relatively small in Finland (1.8 points). The gender gap was even wider for those living in towns and suburbs (22.5 points) and rural areas (28.8 points) of Romania, while Estonia recorded the smallest gender gaps for towns and suburbs and rural areas. For rural areas, the activity rate of Estonian working-age women was 0.9 points below the rate for working-age men. By contrast, Estonia was the only EU country to report a gender gap in favour of women, as the activity rate for working-age women living in Estonian towns and suburbs was 0.4 points higher than the corresponding rate for working-age men.

Note: the y-axis has been cut to focus on the interval 50–100%.

Figure 2: Activity rate (20–64 years), by sex and degree of urbanisation, 2023
(%)
Source: Eurostat (lfst_r_arednu)

In 2023, there were 52.0 million people of working-age (20–64 years) in the EU who were outside the labour force. This figure was considerably lower than the count a decade earlier, as in 2013 there had been 63.8 million people outside the labour force.

People outside the labour force accounted for a fifth (20.0%) of the EU’s working-age population in 2023. The highest shares of people outside the labour force were recorded among people living in towns and suburbs (20.6%) and rural areas (20.5%), while a somewhat lower share was recorded among those living in cities (19.2%); see Figure 3.

Between 2013 and 2023, the share of working-age people in the EU who were outside the labour force fell for all 3 degrees of urbanisation. During this period, the largest fall was recorded for people living in cities (down 4.3 percentage points), followed by those living in rural areas (down 4.0 points) and those living in towns and suburbs (down 3.6 points).

Figure 3: People outside the labour force (20–64 years), by degree of urbanisation, EU, 2013–23
(%)
Source: Eurostat (lfsa_pgauws)

Within the EU, the gender gap for people outside the labour force was consistently in favour of men. In 2023, the share of working-age men outside the labour force was 10.4 percentage points lower than the corresponding share for working-age women (14.8% of all working age men were outside the labour force, compared with a share of 25.2% for working-age women). This gender gap was repeated for all 3 degrees of urbanisation: the gap was 8.9 points for cities, 11.3 points for rural areas and 11.6 points for towns and suburbs.

In more than half of the EU countries (15 out of 27), working-age men living in cities had the lowest share of people outside the labour force. In 2023, less than 10.0% of all working-age men living in cities were outside the labour force in Sweden, Czechia and Estonia. At the other end of the range, the share of working-age men living in cities who were outside the labour force peaked at 21.8% in Belgium. More than a fifth of all working-age men living in the towns and suburbs of Croatia and in the rural areas of Bulgaria, Croatia and Luxembourg were also outside the labour force.

In more than half of the EU countries (18 out of 27), working-age women living in cities had the lowest share of people outside the labour force. In 2023, less than 15.0% of all working-age women living in cities were outside the labour force in Sweden, Estonia and Lithuania. By contrast, more than a third of all working-age women living in the cities of Italy (35.6%) and Belgium (33.4%) were outside the labour force. More than a third of all working-age women living in the towns and suburbs and in the rural areas of Romania, Italy and Greece were also outside the labour force.

Figure 4: People outside the labour force (20–64 years), by sex and degree of urbanisation, 2023
(%)
Source: Eurostat (lfst_pgauws)

Employment

Map 1 presents a set of gridded data based on the GEOSTAT population grid. The map can be zoomed in/out using the tools in the top right corner. It shows that in 2021 a relatively low share of the population was employed across much of southern Europe, while much higher shares were observed in several western and northern EU countries (for example, Denmark, the Netherlands, Austria and Sweden).

Map 1: Employment indicators based on the GEOSTAT population grid, 2021
Source: Eurostat (GISCO)

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 a headline indicator 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 2nd and 3rd quarters of each year and falling in the 4th and 1st quarters; this pattern is particularly pronounced in rural areas (see Figure 5).

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 people lost their income (in part or full).

The initial impact of the COVID-19 pandemic resulted in the EU employment rate for cities falling at a faster pace (than that for towns and suburbs or for 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. From the second quarter of 2021, there was a recovery in EU 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 and onwards aren’t fully comparable with previous years. Having remained relatively unchanged in 2022, EU employment rates continued to grow in 2023.

Figure 5: Quarterly employment rate (20–64 years), by degree of urbanisation, EU, Q1-2013–Q4-2023
Source: Eurostat (lfsq_pgauws)

In 2023, the EU’s employment rate for working-age people (20–64 years) stood at 75.3%. There were relatively small differences in employment rates by degree of urbanisation, with a peak of 75.6% recorded for people living in cities, while the lowest rate was 74.9% for people living in towns and suburbs; see Figure 6. An analysis by sex and degree of urbanisation reveals that the highest male employment rate was recorded for men living in rural areas (81.0% across the EU), while the lowest rate was registered for those living in cities (79.9%). A different pattern existed for women, insofar as the highest employment rate was recorded for women living in cities (71.4%) and the lowest for those living in towns and suburbs (69.1%).

Across the EU countries, the highest employment rates for working-age people (both sexes) living in cities were recorded in Lithuania (83.9%), followed by Hungary (83.4%), Estonia and Slovakia (both 83.3%). By contrast the lowest employment rates for people living in cities were observed in Belgium (66.2%) and Italy (66.7%). The range between the highest and lowest employment rates was even wider for people living in towns and suburbs and in rural areas. The employment rate for people living in towns and suburbs peaked in the Netherlands at 85.4%, some 20.0 percentage points higher than the rate observed in Greece (65.4%). The Netherlands also recorded the highest employment rate for people living in rural areas (85.6%), which was 23.9 points higher than the rate recorded in Romania (61.7%).

Note: the y-axis has been cut to focus on the interval 40–100%.

Figure 6: Employment rate (20–64 years), by sex and degree of urbanisation, 2023
(%)
Source: Eurostat (lfst_r_ergau)

The EU’s gender employment gap was 10.2 percentage points in 2023 (with a higher employment rate for working-age men than for working-age women). By degree of urbanisation, the smallest gap was recorded for people living in cities (8.5 points), while the largest gap (11.6 points) was recorded for those living in towns and suburbs; see Figure 7. The gender employment gap is a headline indicator for equal opportunities within the European pillar of social rights.

Among people of working-age, male employment rates were generally higher than female employment rates in 2023. This pattern was repeated for each EU country for the 3 degrees of urbanisation, with only a few exceptions. For people living in towns and suburbs, the employment rate of working-age women was higher than the corresponding rate for working-age men in Estonia (a difference of 1.3 percentage points), Lithuania (1.1 points) and Finland (0.4 points).

In a majority of EU countries (18 out of 27), the smallest gender employment gaps were registered among people living in cities. The smallest gender employment gaps in Belgium, Estonia, Cyprus, Lithuania, Slovenia and Finland were recorded for people living in towns and suburbs, while in Germany, France and Austria, the smallest gender employment gaps were recorded for people living in rural areas.

Note: the gender employment gap is measured as the employment rate for men (aged 20–64 years) minus the corresponding rate among women. Spain and France are still in the process of implementing the Integrated European Social Statistics Framework Regulation for the labour force domain which may impact geographical comparability.

Figure 7: Gender employment gap (20–64 years), by degree of urbanisation, 2023
(percentage points)
Source: Eurostat (tepsr_lm230)

Figures 8 and 9 provide a more detailed picture of employment rates, introducing an analysis by age. Across the EU, the lowest employment rates tended to be recorded for people aged 15–24 years, many of whom continue to pursue full-time education; see Figure 8. Rates generally peaked for people aged 25–54 years before tailing off among those aged 55–64 years (when, among other factors, early retirement, ill health and caring responsibilities may result in people leaving the labour market); see Figure 9.

The EU employment rate for young people aged 15–24 years was 35.2% in 2023. For young males, the employment rate was higher for people living in rural areas (40.1%) than it was for people living in towns and suburbs (37.9%) or in cities (35.1%). This pattern was reversed for young females, insofar as the highest EU employment rate was recorded for people living in cities (34.1%), with lower rates for people living in towns and suburbs (32.7%) and in rural areas (31.5%). As a result, the EU gender employment gap for young people ranged from a difference of 1.0 percentage points for people living in cities, through 5.2 points difference for people living in towns and suburbs, to 8.6 points for people living in rural areas.

In 2023, a majority of EU countries reported their highest employment rates for young males among those living in rural areas. There was considerable variation between countries, with the employment rate of young males living in rural areas peaking at 84.3% in the Netherlands, while the lowest rate was recorded in Greece (24.1%). A large minority of EU countries (12) posted their highest employment rates for young females among those living in cities. There was again considerable variation between countries, with the employment rate of young females living in cities peaking at 73.1% in the Netherlands, while the lowest rate was recorded in Romania (11.7%).

Figure 8: Employment rate (15–24 years), by sex and degree of urbanisation, 2023
(%)
Source: Eurostat (lfst_r_ergau)

In contrast to the situation observed for young people, there were smaller differences in employment rates for older people aged 55–64 years and their rates were generally higher. In 2023, the overall employment rate for older people in the EU was 63.9%. A somewhat higher rate was recorded for older people living in cities (65.2%) than for older people living in towns and suburbs (63.9%) or in rural areas (62.1%). This pattern – a higher employment rate for people living in cities than for people living in towns and suburbs or in rural areas – was repeated both for older men (where a peak of 70.8% was recorded) and for older women (60.2%).

In 2023, a small majority (17 out of 27) of the EU countries recorded their highest employment rate for older men aged 55–64 years among people living in cities. The highest employment rate among older men living in cities was recorded in Hungary (85.6%), while the lowest rate for this subpopulation was recorded in Belgium (60.7%). Note the employment rate of older men in Luxembourg was 49.8% for those living in rural areas and 44.7% for those living in towns and suburbs; as such, Luxembourg was the only EU country to report employment rates of less than 50.0% for older men for any of the degrees of urbanisation.

In 18 out of 27 EU countries, the highest employment rate for older women aged 55–64 years was recorded among those living in cities. In 2023, the highest employment rate among older women living in cities was recorded in Sweden (77.2%), while the lowest rate for this subpopulation was recorded in Greece (43.6%). It is interesting to note that the employment rate for older women was less than 50.0% across all 3 degrees of urbanisation in Greece and across both degrees of urbanisation which exist in Malta. A similar pattern – employment rates that were less than 50.0% – was repeated for older women

living both in towns and suburbs and in rural areas of Spain, Croatia, Italy, Luxembourg, Poland and Romania
living both in cities and in towns and suburbs of Austria
living in rural areas of Slovenia.

Figure 9: Employment rate (55–64 years), by sex and degree of urbanisation, 2023
(%)
Source: Eurostat (lfst_r_ergau)

Employment rates for working-age people (20–64 years) 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 2013 and 2023, the EU employment rate for working-age people rose 7.8 percentage points; it stood at 75.3% at the end of the period under consideration. Note that due to a break in series, data for 2021 and onwards aren’t fully comparable with previous years.

EU employment rates for working-age people increased for each degree of urbanisation between 2013 and 2023. Somewhat larger increases were recorded for people living in cities (where rates were up 8.4 percentage points), compared with people living in rural areas (up 7.9 points) or towns and suburbs (up 7.1 points); see Figure 10. This pattern – increasing employment rates – was repeated in every EU country and for all 3 degrees of urbanisation, with a single exception. The employment rate of working-age people living in rural areas of Romania was 5.0 percentage points lower in 2023 than it had been in 2013. 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 of employed people 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 10: Employment rate (20–64 years), by degree of urbanisation, 2013 and 2023
(%)
Source: Eurostat (lfst_r_ergau)

Figure 11 provides a further analysis of employment rates, contrasting rates for national and foreign citizens; the latter includes non-EU citizens as well as citizens of one EU country living in another EU country. Across the whole of the EU, the employment rate for national citizens of working-age (20–64 years) stood at 76.2% in 2023, which was 8.2 percentage points higher than the corresponding rate for foreign citizens. This pattern was repeated in cities and in rural areas, as employment rates for national citizens were, respectively, 8.2 and 8.1 percentage points higher than the rates for foreign citizens.

In 2023, the employment rate for national citizens of working-age living in cities was more than 10.0 percentage points above the corresponding rate for foreign citizens in Germany, France, Hungary, Romania and Finland. This pattern was repeated across the rural areas of Germany, France, Latvia, the Netherlands, Finland and Sweden, where employment rates for national citizens were more than 10.0 points above the corresponding rate for foreign citizens. While employment rates were generally lower for foreign citizens (than for nationals) in most EU countries, there were some exceptions

in cities and in rural areas, the employment rates of foreign citizens were higher than the employment rates of national citizens in Czechia, Croatia, Luxembourg, Poland and Slovenia
in cities, the employment rates of foreign citizens were higher than the employment rates of national citizens in Ireland, Italy, Malta and Slovakia
in rural areas, the employment rates of foreign citizens were higher than the employment rates of national citizens in Cyprus, Lithuania and Portugal.

Figure 11: Employment rate (20–64 years), by citizenship and degree of urbanisation, 2023
(%)
Source: Eurostat (lfst_r_erednu)

Employment by job tenure – in other words, the duration spent in the same job – is a secondary indicator for fair working conditions within the European pillar of social rights. In 2023, around three fifths (60.1%) of the EU’s working-age population (20–64 years) who were employed had been in their current job for at least 5 years. This figure was higher among people living in rural areas (63.6%) and towns and suburbs (61.9%), than it was among people living in cities (56.6%). 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 time; some 14.8% of people in cities who were employed had been in their current job for less than 12 months, compared with 11.4% in rural areas.

In 2023, the share of people employed in their current job for at least 5 years was higher for working-age people living in rural areas (compared with those living in cities) in most EU countries (23 out of 27). The exceptions were eastern EU countries: Bulgaria, Hungary, Romania and Slovakia. In Belgium, Denmark, Germany, Ireland, Luxembourg, Malta, Austria and Finland, the share of working-age employed people living in rural areas who had been in their current job for at least 5 years was more than 10.0 percentage points higher than the corresponding share for people living in cities.

The gender gap in part-time employment is a secondary indicator for equal opportunities within the European pillar of social rights. There were 33.5 million working-age people (20–64 years) employed on a part-time basis within the EU in 2023; just over three quarters of all people working on a part-time basis were women (25.5 million, or 76.0% of the total).

Within the EU, more than 1 in 6 people (17.1%) aged 20–64 years were employed on a part-time basis in 2023. The relative importance of part-time work was considerably higher among women (27.9% of those employed) than it was among men (7.7%). Part-time employment rates (both sexes combined) were higher for those living in towns and suburbs (17.9%) and cities (17.6%) than they were for people living in rural areas (15.3%). Across the EU countries, 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: Employment characteristics (20–64 years), by degree of urbanisation, 2023
(% share of total employment)
Source: Eurostat (lfst_r_egadu) and (lfst_r_e2pgaedcu)

In 2023, there were 20.7 million fixed-term employees of working age (20–64 years) in the EU; this subpopulation is sometimes referred to as temporary employees. These 20.7 million fixed-term employees equated to 12.3% of the EU’s total number of 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) levels 0 to 2). In the EU, more than a sixth (17.8%) of all employees with a relatively low level of educational attainment were fixed-term employees; this share was considerably lower (11.2%) among employees with a tertiary level of educational attainment (as defined by ISCED levels 5 to 8).

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 2023, irrespective of whether they lived in cities (17.8%) or rural areas (17.4%). By contrast, the share of fixed-term employees with a tertiary level of educational attainment was higher among those living in cities (12.5%) than it was for those living in rural areas (9.3%).

In 2023, some of the highest shares of fixed-term employees – for all education levels combined – were recorded in the Netherlands, Portugal, Spain and Italy; they each recorded a share of more than 15.0%. Looking in more detail (and subject to data availability – see Figure 13 for data coverage), fixed-term employees accounted for more than a fifth of all employees

with a low level of educational attainment living in the cities of Germany, Cyprus, the Netherlands, Poland, Slovenia and Sweden
with a low level of educational attainment living in the rural areas of Greece, Spain, Cyprus, Hungary, the Netherlands and Poland
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, Italy and Portugal.

Figure 13: Fixed-term employees (20–64 years), by educational attainment and degree of urbanisation, 2023
(% share of total employees)
Source: Eurostat (lfst_r_e2tgaedcu)

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 a headline indicator for fair working conditions within the European pillar of social rights. The unemployment rate is the number of unemployed people, expressed as a proportion of the total labour force (the sum of employed and unemployed people); in other words, the denominator doesn’t include people who are outside of the labour force, for example, full-time students, those who don’t want to or can’t work, or retired people.

In 2023, the EU’s unemployment rate for people aged 15–74 years stood at 6.1%. While the rate rose during the COVID-19 crisis, by 2023 it had fallen back to a level that was below that recorded prior to the pandemic (6.7% in 2019); note that due to a break in series, data for 2021 onwards aren’t fully comparable with previous years.

By degree of urbanisation, the lowest unemployment rates in the EU in 2023 were recorded for people living in rural areas (5.3%), with somewhat higher rates for those living in towns and suburbs (5.8%) and, in particular, cities (6.7%). 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 2023, the unemployment rate for people living in cities peaked among the EU countries at 11.8% and 10.3%, respectively, in Spain and Greece. Similar situations were observed for people living in towns and suburbs and in rural areas, as Greece and Spain were the only EU countries to record rates that were higher than 10.0%. At the other end of the range, the lowest unemployment rate for people living in cities was recorded in Romania (1.9%). Czechia, Germany and Poland had the joint lowest rate (2.8%) for people living in towns and suburbs, while the lowest rate for people living in rural areas was recorded in Germany (1.8%).

In approximately half of the EU countries, the highest unemployment rate by degree of urbanisation in 2023, was recorded for people living in cities. There were however several exceptions

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

Note: missing information is due to low reliability.

Figure 14: Unemployment rate (15–74 years), by sex and degree of urbanisation, 2023
(% share of labour force)
Source: Eurostat (lfst_r_urgau)

Figure 15 shows changes in unemployment rates between 2013 and 2023. Note that unemployment rates were relatively high in 2013 (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 and onwards aren’t fully comparable with previous years. During the period under consideration, the EU’s unemployment rate fell by 5.3 percentage points. The unemployment rate fell at a somewhat faster pace among people living in cities (down 5.6 points) and people living in rural areas (down 5.5 points), while a somewhat slower pace of decline was recorded for people living in towns and suburbs (down 5.0 points).

Unemployment rates fell in the vast majority of EU countries between 2013 and 2023 for each degree of urbanisation; this was particularly the case in those economies most severely impacted by the earlier crises. There were, however, a few exceptions, as unemployment rates

rose for people living in the cities of Finland and the rural areas of Romania (note there is a break in the time series which is likely to have had a considerable impact on the unemployment rate in rural areas)
were the same in 2013 and 2023 for people living in the cities of Sweden.

Figure 15: Unemployment rate (15–74 years), by degree of urbanisation, 2013 and 2023
(% share of labour force)
Source: Eurostat (lfst_r_urgau)

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

In 2023, the EU’s youth unemployment rate (defined here as covering young people aged 15–24 years) was 14.5%, while the overall unemployment rate for people aged 15–74 years was 6.1%. Youth unemployment in the EU was particularly concentrated in cities, where the unemployment rate stood at 15.7%, compared with 14.0% for towns and suburbs, and 13.4% for rural areas. This pattern of the highest youth unemployment rates among people living in cities was repeated in 13 (principally Nordic, western and southern) EU countries. By contrast, the highest youth unemployment rates in the Baltic countries, Spain, Luxembourg, Malta and Romania were recorded in towns and suburbs, while people living in rural areas experienced the highest rates in Bulgaria, Greece, Croatia, Hungary, Poland and Slovakia.

In 2023, youth unemployment covered more than a quarter of the labour force aged 15–24 years in

the cities, towns and suburbs, and rural areas of Spain
the towns and suburbs and rural areas of Greece
the cities of Italy
the towns and suburbs of Romania.

An analysis by sex reveals that the male youth unemployment rate was higher than the female rate for each degree of urbanisation in Belgium, Denmark and Finland. In 2023, the male youth unemployment rate for people living in the cities of Cyprus was 13.0 percentage points higher than the corresponding rate for females. There were also relatively large gender gaps – in favour of females – for youth unemployment rates among people living in the rural areas of Lithuania and Belgium.

The female youth unemployment rate was higher than the male rate for each degree of urbanisation in Greece, Croatia and Italy. In 2023, the female youth unemployment rate for people living in the rural areas of Greece was 12.1 percentage points higher than the corresponding rate for males. There were also relatively large gender gaps – with a higher rate for females – for youth unemployment rates among people living in the rural areas of Spain and the cities of Croatia. By contrast, there were relatively large gender gaps – with a higher rate for males – for youth unemployment rates among people living in the cities of Cyprus and France and the rural areas of Lithuania.

Note: missing information is due to low reliability.

Figure 16: Youth unemployment rate (15–24 years), by sex and degree of urbanisation, 2023
(% share of labour force)
Source: Eurostat (lfst_r_urgau)

There has been a marked decrease in the EU’s youth unemployment rate during the last decade; it fell from 24.4% in 2013 to 14.5% in 2023; note that due to a break in series, data for 2021 and onwards aren’t fully comparable with previous years. Figure 17 shows the largest reduction in youth unemployment rates by degree of urbanisation was for young people living in rural areas, down 10.9 percentage points during the period under consideration. Youth unemployment rates also fell in cities (down 9.8 points) and in towns and suburbs (down 9.4 points).

Between 2013 and 2023, youth unemployment rates fell systematically across all 3 degrees of urbanisation for most EU countries. The only exceptions were

Estonia and Sweden, where the youth unemployment rate rose in cities
Luxembourg, where the youth unemployment rate rose in towns and suburbs and in rural areas
Austria, where the youth unemployment rate rose in cities and in rural areas
Romania, where the youth unemployment rate rose in rural areas (note there is a break in the time series which is likely to have had a considerable impact on the youth unemployment rate in rural areas).

Figure 17: Youth unemployment rate (15–24 years), by degree of urbanisation, 2013 and 2023
(% share of labour force)
Source: Eurostat (lfst_r_urgau)

Source data for tables and graphs

Labour market: tables and figures

Context

There are 6 European Commission priorities for 2019–24, including the creation of ‘An economy that works for people – Ensuring social fairness and prosperity’, 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 the President of the European Commission 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 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

↑ 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 aren’t required to work but aren’t made unemployed. Depending on the details of specific schemes: workers receive full, reduced or no pay; 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 that employees return to work for the same employer at the end of the scheme.

Explore further

Database

Thematic section

Publications

Statistical publications

Eurostat regional yearbook – 2024 edition
Urban Europe – statistics on cities, towns and suburbs – 2016 edition

Methodological publications

Applying the Degree of Urbanisation – A methodological manual to define cities, towns and rural areas for international comparisons – 2021 edition

Methodology

External links

Urban Agenda for the EU

European Commission – Directorate-General Agriculture and rural development

European Commission – Directorate-General Regional and Urban Policy

European Committee of the Regions

European Committee of the Regions – political priorities 2020–25

European networks

United Nations

Legislation

Statistical legislation

Employment and unemployment (LFS) – legislation
Regulation (EU) 2017/2391 of the European Parliament and of the Council of 12 December 2017 amending Regulation (EC) No 1059/2003 as regards the territorial typologies (Tercet)
Consolidated and amended version of Regulation (EC) No 1059/2003 of the European Parliament and of the Council on the establishment of a common classification of territorial units for statistics (NUTS)

Policy legislation

Commission Delegated Regulation (EU) No 522/2014 of 11 March 2014 supplementing Regulation (EU) No 1301/2013 of the European Parliament and of the Council with regard to the detailed rules concerning the principles for the selection and management of innovative actions in the area of sustainable urban development to be supported by the European Regional Development Fund
Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Regulation (EU) No 1310/2013 of the European Parliament and of the Council of 17 December 2013 laying down certain transitional provisions on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)

Visualisation

Regions and cities illustrated (RCI) – Degree of urbanisation

[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 aren’t required to work but aren’t made unemployed. Depending on the details of specific schemes: workers receive full, reduced or no pay; 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 that employees return to work for the same employer at the end of the scheme.

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