The number of employed persons increased by 1.0% in the euro area and by 0.9% in the EU in the third quarter of 2020, compared with the previous quarter. These were the strongest increases observed since time series started in 1995. In the second quarter of 2020, employment had decreased by 3.0% in the euro area and by 2.8% in the EU.
According to Eurostat, the statistical office of the European Union, compared with the same quarter of the previous year, employment decreased by 2.3% in the euro area and by 2.0% in the EU in the third quarter of 2020, after -3.1% and -2.9% respectively in the second quarter of 2020.
While the impact of the COVID-19 pandemic on employment in persons was mitigated by government support schemes, the changes in hours worked were much more pronounced. Hours worked increased by 14.8% in the euro area and by 11.9% in the EU in the third quarter of 2020, compared with the previous quarter. Compared with the same quarter of the previous year the declines were 4.5% in the euro area and 3.7% in the EU respectively.
In the third quarter of 2020, Ireland (+3.3%), Spain (+3.1%) and Austria (+3.0%) recorded the highest growth compared with the previous quarter. The largest decreases were observed in Lithuania (-1.9%), Romania (-1.0%), and Bulgaria (-0.5%).
The decrease in hours worked was generally much more pronounced for all Member States.
Based on seasonally adjusted figures, Eurostat estimates that in the third quarter of 2020, 205.2 million people were employed in the EU, of which 157.4 million were in the euro area.
In relation to the COVID-19 pandemic, employment in persons is 3.6 million in the euro area (-2.2%) and 4.3 million (-2.1%) in the EU below the level of the fourth quarter of 2019.
Compared to the fourth quarter of 2019, the number of hours worked was 4.6% lower in the euro area and 3.6% lower in the EU.
The combination of GDP and employment data allows an estimation of labour productivity. The analysis of growth compared to the same quarter of the previous year shows that productivity growth (based on employed persons) fluctuated around 1% for both zones between 2013 and 2018.
In relation to the COVID-19 pandemic, productivity based on persons recovered from the previous sharp drop in the third quarter 2020, but remained negative compared to the same quarter of the previous year with -2.2% for the euro area and -2.3% for the EU.
Based on hours worked the impact on productivity was more limited. In the euro area there was a slight increase in productivity based on hours worked compared to the same quarter of the previous year of 0.4%, while for the EU productivity declined slightly by 0.5%.
