In 2009, 71% of the working-age population in the EU-27 was active on the labour market (i.e. either employed or unemployed). Participation rates ranged from as high as almost 81% in Denmark to as low as 59% in Malta, with more than half of the Member States displaying rates in excess of 70%, while Hungary, Italy, Poland and Romania joined Malta in recording rates of less than 65%.
Activity rates vary significantly between men and women. For women the activity rate was slightly above 64% in 2009, compared with 78% for men (Chart 68). This inequality varies considerably between Member States. Differences of more than 20 percentage points can be observed in Greece, Italy and Malta, with Cyprus, the Czech Republic, Ireland and Spain also showing relatively large differences. In contrast, the Nordic and Baltic States display relatively small differences. Member States with the largest gender differences in activity rates are also generally those that are furthest from reaching the Stockholm target on female employment.
5.2.3. UnemploymentUnemployment in the EU rose substantially for both men and women in 2009, although the rise was stronger for men. The unemployment rate for men rose to 9%, up from less than 7% in the previous year. Before that, the rate had been declining gradually since 2004 when it peaked at 8.5%. For women unemployment had previously been higher than for men, but in 2009 that difference disappeared due to the more limited increase in female unemployment. In contrast to the situation for men, the unemployment rate for women is substantially below the levels observed in the first half of the decade, when rates of close to 10% were regularly recorded (Chart 69).
The overall EU unemployment rate stood at 8.9% in 2009, but with notable differences across Member States. Rates of 10% or more were recorded in Hungary (10.0%), Ireland (11.9%), Slovakia (12.0%), Lithuania (13.7%), Estonia (13.8%), Latvia (17.1%) and Spain (18.0%). In contrast, the Netherlands recorded the lowest unemployment rate, at 3.4%, while Austria also had a rate below 5%.
While the unemployment rates of men and women are now -practically the same at EU level, there are considerable differences across Member States (Chart 70). In Greece the unemployment rate of women is much higher than that of men, with a difference of more than 6 percentage points. In addition, in the Czech Republic, Italy, Luxembourg, Portugal and Slovakia the unemployment rate of women is more than 1 percentage point above that of men. However, in several Member States it is the other way around with unemployment rates of men being higher than for women in 2009. This is notably the case in the Baltic States and Ireland where the difference is more than 6 percentage points. These Member States were the ones most severely hit by the recent economic crisis, which particularly affected industries dominated by male employment.
The labour market situation of young people remains a serious concern, with this group being particularly vulnerable in their initial steps on the labour market. In 2009, the EU youth unemployment rate (i.e. the share of unemployed among the labour force in the 15-24 age group) was 19.6% - about twice that for adults aged 25–54, and more than 4 percentage points higher than in 2008. In several Member States, the problem seems particularly severe, with youth unemployment rates of 25% or higher in the Baltic States, Greece, Hungary, Italy, Slovakia, Spain and Sweden in 2009 (Chart 71).
The particularly high unemployment rate for young people partly reflects the fact that figures for unemployment rates are determined relative to the labour force (those who are either employed or unemployed). Since many young people are in education, and often do not appear as part of the labour force (although they may do where students study and work at the same time), this rate can be perhaps misleadingly high as well as difficult to compare across Member States. An alternative or complementary measure, which allows us to gain a fuller understanding of the labour market situation for young people, is the youth unemployment ratio (i.e. unemployed people aged 15–24 relative to the total population of the same age).
In 2009, on average almost 9% of all people aged 15–24 were unemployed in the EU-27. Again Spain has the highest share at more than 17% but the unemployment ratio was also relatively high in Estonia, Finland, Ireland, Latvia, Sweden and the United Kingdom, all with shares of more than 10% (Chart 72). In the case of Belgium, Greece, Hungary, Italy, Portugal, Romania and Slovakia, the unemployment ratios give a less negative picture than the unemployment rates, with ratios lower than the EU average while the unemployment rates are considerably higher. The opposite is true for Ireland, Sweden and the United Kingdom however, where the ratio figures suggest that the labour market situation of young people is relatively more serious than suggested by the unemployment rates. The picture regarding gender is also clearer if ratios are considered - Greece is then the only country where unemployment for young women is substantially higher than for young men.