The eurozone unemployment rate fell to a new record low in January, as the bloc continued to show resilience in the face of global uncertainty.
Unemployment in the currency area fell to 6.1% from 6.2% in December, the European Union’s statistics agency Eurostat said Wednesday.
“Overall, these are robust data which will add to the looming hawkish shift at the ECB as inflation risks now seem to be shifting to the upside,” said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics.
Across the bloc’s major economies, the decline was driven mainly by falling joblessness in Spain and Italy, he said.
Excluding Bulgaria, which joined the eurozone at the start of 2026, the unemployment rate stood at 6.2%.
“Falling unemployment in Bulgaria of all places…is now helping eurozone joblessness lower,” Vistesen said.
The currency area’s jobless rate is projected to remain relatively stable this year. However, a prolonged attack on Iran by the U.S. and Israel could eventually feed through to employment, as higher energy prices put pressure on businesses.
The figures follow the publication of S&P Global’s purchasing managers’ eurozone survey in late February, which showed companies are reluctant to hire new employees.
In Germany, the bloc’s largest economy, the number of unemployed people fell to just above 3 million in February, with the adjusted rate remaining at 6.3%.
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Don Nico Forbes is a reporter for Dow Jones Newswires and The Wall Street Journal, covering European economics. He also writes features on sustainable business. Don joined Dow Jones and the Journal as a publishing editor in 2019. He holds degrees from the University of Manchester and Universitat Pompeu Fabra, in Barcelona. https://www.wsj.com/world/europe/eurozone-jobless-rate-hit-new-record-low-in-january-43a06109?mod=global_news_article_pos2
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