According to the EU Employment and Social Situation Quarterly Review, divergence continues to increase across Member States, translating into persistently growing labour market and social challenges, marked by ever higher unemployment at EU level and a deterioration of the situation of many households, and of young people in particular. Employment has been trending down again since mid-2011, with positive developments only noticeable in part-time work. Unemployment rose further in January 2013, to 26.2 million in the EU, accounting for 10.8 % of the active population, and concerns nearly one in four economically active young people. This edition highlights the effects recent government spending cuts have had on the employment and social situation in a number of Member States, the diversity in terms of labour market matching and recent trends in posting of workers across the EU. This edition also analyses the specific situation in Bulgaria and in the sectors of manufacture of basic metals and motor vehicles. It finally dedicates a Special Supplement to the analysis of recent demographic trends in the European Union. This publication is available in electronic format in English.