Employment growth in the region

In the first quarter of 2025, the number of employed persons increased by 0.7% year-on-year (y/y), corresponding to a quarter-on-quarter (q/q) growth of 0.2% in the euro area (seasonally adjusted figures). In the EU, employment growth in terms of persons was 0.4% y/y and stagnated in q/q terms in the first quarter of 2025. Looking across countries, Croatia experienced one of the highest employment growth rates in the entire EU (2.9% y/y and 1% q/q). Czechia and Hungary were the other two CEE countries that saw employment growth in persons in the first quarter of 2025 in annual terms (1.1% y/y and 0.3% y/y, respectively). However, in Hungary, employment stagnated compared to the fourth quarter of 2024. In the rest of the region, employment growth declinedmost notably in Romania and Poland. In Romania, employment dropped by 4.4% y/y and 2.1% q/q. Furthermore, unemployment rates ticked up in both Romania and Poland. All in all, however, labor market conditions remain relatively tight.