Job creation (q/q, thousands)Moderate deterioration of the labour market. Payroll employment contracted by 0.1% q/q (-0.3% y/y) in the first quarter of 2025, with losses in services and construction, in particular.
However, the unemployment rate remains moderate, standing at 7.4% in Q1 2025, the same level as in
Q3 2023 and Q3 2024. The employment climate recovered to 97 in June, which is consistent with the continued job losses at a moderate pace in the coming months.
Inflation (y/y)Inflation is low. Harmonised inflation rose to 0.8% y/y in June (from 0.6% y/y in May 2025), as a result of a rebound in services prices (and, therefore, core inflation).
Nevertheless, inflation remains very moderate, and three-month price expectations across all sectors (including services) are moderate as well.
