Archive:European Neighbourhood Policy - East - labour market statistics

Data extracted in January 2022.

Planned article update: March 2023.

Highlights

Between 2010 and 2020 the gender gap in employment rates declined in Armenia and Azerbaijan but increased in Georgia, Moldova and Ukraine.

Armenia and Georgia recorded the highest youth unemployment rates among the European Neighbourhood Policy-East countries in 2020. In Armenia, youth unemployment was 33.3 % for women and 31.6 % for men, while in Georgia it was 38.2 % and 40.1 % respectively.

Economically active persons aged 20-64, 2010-2020

This article is part of an online publication; it presents information on a range of labour force statistics for the six countries that together form the European Neighbourhood Policy-East (ENP-East) region, namely, Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine, compared with the European Union (EU). Data shown for Georgia exclude the regions of Abkhazia and South Ossetia over which Georgia does not exercise control and the data shown for Moldova exclude areas over which the government of the Republic of Moldova does not exercise control. The latest data for Ukraine generally exclude the illegally annexed Autonomous Republic of Crimea and the City of Sevastopol and the territories which are not under control of the Ukrainian government (see footnotes for precise coverage).

The article presents a range of labour market indicators such as activity rates, employment rates, an analysis of employment by economic activity and by professional status, and statistics on unemployment.

Full article

Activity rates

The economically active population, also known as the labour force, comprises employed and unemployed persons. The labour force also includes people who were not at work but had a job or business from which they were temporarily absent, for example because of illness, holidays, industrial disputes, education or training. These rates, as well as employment rates, are typically published for the working age population, which is generally considered to be those aged 15-64 years. Data is also published covering only those aged 20-64 years, in order to take account of the increasing proportion of young people who remain in education.

Figure 1 shows the proportion of the economically active population aged 20-64 as a time series over the period 2010-2020. Figure 2 compares data for 2010 and 2020, disaggregated to show the activity rates for men and women. Since some of the ENP-East countries’ data on the labour force is compiled using definitions that differ from EU standards, it is generally more useful to compare country data over time, rather than compare between countries.

Over the period 2010-2020, the economically active population in Azerbaijan remained stable. It was recorded at 78.1 % in 2010 and at 78.7 % in 2020. Male activity increased by 0.4 percentage points over the period to 81.5 % in 2020, while female activity increased by 0.8 percentage points, to 76.1 %. Although the activity rate increased for both males and females over the decade, the gender gap with respect to economic activity was slightly reduced.

Although the total economically active population of Moldova ended the period almost at the same level as it started, at 51.1 %, fluctuations were recorded during the decade: total activity reached a low of 49.9 % in 2013 and a high point of 54.9 % in 2018. Whereas male participation grew by 1.9 percentage points to 55.5 %, female participation decreased by 2.0 percentage points to 47.0 % in 2020. As a result, the economic activity gender gap in Moldova increased by 3.8 percentage points from 2010 to 2020. Moldova recorded by far the lowest economically active population among the ENP-East countries during 2010-2020.

Ukraine also recorded a slightly widening gender gap. Whereas male participation was measured at 0.1 percentage points higher at 78.4 % in 2020, female participation at 66.0 % was 0.6 percentage points lower than in 2010. This resulted in a slight decline by 0.2 percentage points in total economic participation to 72.0 % in 2020. In both Moldova and Ukraine, changes in the definition occurred during this period.

In Armenia, total participation fell by 5.3 percentage points to 66.3 % in 2020. This was the second largest fall in the percentage of economic active persons among the ENP-East countries, a low point of 62.7 % being reached in 2019. A fall in labour market participation is often associated with a rise in unemployment; however, Figure 6 below shows that this is not the case here. Male participation fell by 8.6 percentage points to 77.2 % in 2020, while female participation declined by 3.4 percentage points to 56.8 % over 2010-2020. The economic participation gender gap therefore fell by 5.2 percentage points.

There was a break in the data series for Georgia in 2020, so that data may not be fully comparable with previous years. As recorded, the decline in total economic activity rate in Georgia was 11.3 % in 2020, from 74.5 % the previous year to 63.2 %. Over 2010-2019, the annual average decline had been a very modest 0.3 percentage points; the total decline 2010-2020 was 13.1 percentage points, the largest in the ENP-East region. Female participation in Georgia fell by 14.1 percentage points over 2010-2020 to 52.8 %, while male participation fell by 12.8 percentage points to 74.0 %, resulting in an increase in the economic activity gender gap.

For Belarus, data for economic activity of people aged 20-64 are only available from 2016 onwards. Participation rose by total 1.2 percentage points over four years to 83.7 % in 2020. This total was made up of 87.8 % male participation and 79.8 % female participation. These rates were the highest among the ENP-East countries and also above the levels in the EU in 2020.

Female economic activity grew faster than male in the EU over the period 2010-2020: female participation was 67.2 % and male 81.3 % in 2010, giving a total activity rate of 74.2 %. By 2020, female participation had grown by 4.2 percentage points to 71.4 % and male by 1.5 % to 82.8 %, for a total of 77.1 %. Correspondingly, the gender gap fell by 2.7 percentage points.

Figure 1: Economically active persons aged 20-64, 2010-2020
(% of total population)
Source: Eurostat (lfsi_emp_a) and (enpe_lfsa_argaed)

Figure 2: Economically active persons aged 20-64, by sex, 2010 and 2020
(% of total population)
Source: Eurostat (lfsi_emp_a) and (enpe_lfsa_argaed)

Employment rates

In line with international standards, the EU European Union labour force survey (EU LFS) defines persons in employment as those aged 15 and over, who, during the reference week, performed some work, even for just one hour per week, for pay, profit or family gain. Employment statistics are frequently reported as employment rates to discount the changing size of countries’ populations over time and to facilitate comparisons between countries of different sizes. These rates are typically published for those aged 15-64 years, as well as for those aged 20-64 years. The data shown in Figure 3 shows employment rates in 2010 and 2020 by gender for the 20-64 year age group.

In Azerbaijan, male employment fell by 1.2 percentage points from 2010 to its 2020 value of 76.7 %. Female employment remained at the same level, with only a slight decline of 0.3 percentage points to 69.7 %. The gender gap, the difference between male and female employment rates, declined by 0.9 percentage points as a result. In Moldova, male employment increased by 4.3 percentage points to 53.1 %, while female employment declined by 0.7 percentage points to 45.5 % in 2020. The gender gap therefore increased by 5.0 percentage points.

In Ukraine, male employment declined by 0.3 percentage points to 70.8 % over 2010-2020, while female employment declined by 2.1 percentage points to 60.0 %. The gender gap consequently increased by 1.8 percentage points. In Armenia, male employment increased by 3.2 percentage points to 63.9 % and female employment increased by 5.3 percentage points to 47.2 %, leading to a gender gap fall of 2.1 percentage points. At 16.7 % in 2020, this was still the highest among the countries in the region.

Female employment in Belarus was 77.3 % in 2020, while male employment was 83.7 %. The gender gap was 6.4 percentage points, the smallest in the ENP-East region. No data is available for 2010. In Georgia, male employment decreased over the period 2010-2020 by 10.0 percentage points to 58.7 %, while female employment declined by 11.5 percentage points to 43.9 % in 2020. The gender gap therefore increased over the period 2010-2020 by 1.6 percentage points to 14.8 %, the second largest in the ENP-East region.

During the period 2010-2020, EU male employment rate rose by 3.8 percentage points to 77.2 %. This remained higher than the corresponding rate for women, which rose by 5.6 percentage points to 66.2 % in 2020. The gender gap consequently fell by 1.8 percentage points to 11.0 percentage points in 2020.

Figure 3: Employment rates, persons aged 20-64, by sex, 2010 and 2020
(% of total population)
Source: Eurostat (lfsi_emp_a) and (enpe_lfsa_ergan)

Employment by economic activity

Figure 4 shows the structure of employment for 2010 and 2020. In all of the ENP-East countries, services accounted for the largest proportion of the workforce in both years. In the decade to 2020, services increased their shares of employment throughout the region and in that year accounted for more than half of all people employed in all the economies of the region except Azerbaijan, where the share was only slightly less than half.

A relatively high share of the total workforce was employed in agriculture, forestry and fishing in Georgia, Azerbaijan, Armenia and Moldova; this sector was the second largest employer in each of these countries in 2020. In 2010, the sector had been the largest employer in Georgia. Although there was a break in the time series for Georgia, meaning that the data for the two years may not be comparable, it is worth noting that the sector’s employment share fell by 28.2 percentage points over 2010-2020.

Industrial employment was the second largest employer in Belarus and Ukraine in 2020, although the sector’s shares declined in both countries over the period 2010-2020. The share of industry in employment grew in the other countries, although only marginally in Azerbaijan. Construction employment tends to be highly cyclical. In 2020, construction shares in employment ranged from 6.9 % in Georgia to 7.6 % in Belarus. In Georgia in 2010, construction employment was not separately identified but instead incorporated into the services sector.

A comparison of the employment structure in 2010 with that in 2020 shows a fall in the share in agriculture, forestry and fishing in five of the ENP-East countries, although the decline was small in Azerbaijan (1.9 percentage points). There was a marginal increase recorded in Belarus (0.5 percentage points). Services accounted for an increase in their share of the workforce in all ENP-East countries over 2010-2020, although in Azerbaijan the share increased only marginally over the period (1.0 percentage points).

There was a rapid restructuring of the labour markets in Armenia, Georgia, Moldova and Ukraine between 2010 and 2020. In Ukraine, this may in part reflect a change in geographical coverage of data; in Moldova, the inclusion of persons producing goods for own consumption; and in Georgia, a break in the data series. In Armenia, the proportion of people working in agriculture, forestry and fishing activities fell strongly, while the shares of the workforce employed increased most strongly in services and to a lesser extent in industry.

Within the EU, services accounted for 70.7 % of persons employed (aged 15 or more) in 2020, substantially higher than any of the ENP-East countries. The share of services within EU employment rose by 2.7 percentage points from 2010 to 2020.

Figure 4: Employment by economic activity, persons aged 15 years or more, 2010 and 2020
(% of total employment)
Source: Eurostat (lfsa_egan2) and Eurostat data collection

Employment by professional status

The share of self-employment and family work was 65.2 % of the total workforce in Azerbaijan in 2020. In Armenia it was 32.5 %; in Georgia, 31.9 %; and in Moldova, 21.9 %. These figures reflect, to some degree, the relative share of agricultural activities in each of these countries, with work spread across numerous small-scale, family-run farms and cooperatives. In contrast, in Ukraine self-employment and family workers represented 16.6 % of the workforce, and in Belarus 4.5 %.

Georgia saw a large recorded fall in the share of self-employment and family work of 27 percentage points in the period 2010-2020, although the break in the time series may mean that the two data points are not comparable. In Moldova, there was a fall of more than 7 percentage points. In the other two ENP-East countries for which data are available for both years, Azerbaijan and Ukraine, the decline was relatively minor.

Self-employed and family workers made up 12.5 % of the labour force in the EU in 2020. The share of self-employed and family workers in total employment fell by 1.6 percentage points over the decade from 2010.

Figure 5: Employment by professional status, persons aged 15 years or more, 2010 and 2020
(% of total employment)
Source: Eurostat (lfsa_egaps) and Eurostat data collection

Unemployment rates

Eurostat publishes unemployment statistics based on the definition of unemployment provided by the International Labour Organisation (ILO), for which there are three criteria: being without work, actively seeking work, and being available for work. Therefore, people working only a few hours a week and who wish to work more, known as the underemployed, are excluded from the unemployment figures. In countries that have significant underemployment, the unemployment data will be better understood if they area read in conjunction with employment data. Statistics on part-time work or on total hours worked may also shed light on trends in underemployment.

In general, the unemployment rate begins to rise only some time after an economic downturn has occurred, since some employers seek to retain workers. Once the economy starts to pick up again, employers usually remain cautious about hiring new workers and there may be a lag before the unemployment rate starts to fall. In addition, people who were formerly economically inactive may decide to join or re-join the labour force. These tendencies can be seen in some ENP-East countries which were affected by the 2008 global financial and economic crisis. Their unemployment rates peaked at latest in 2010, after which there were signs that the labour market was moving to a more balanced position.

Figure 6 shows data for the ENP-East countries on unemployment rates as a percentage of the labour force over the period 2010-2020. Comparison of the data between the labour markets of the ENP-East countries may be difficult, either because of breaks in the data series or differences from the standard definition of the statistic.

Azerbaijan recorded a relatively low unemployment rate over the period 2010-2020. From 2010 to 2014, the unemployment rate declined to 4.9 %. It was then relatively stable until 2019. An increase of 2.4 percentage points led to the 2020 unemployment rate being the highest of the period at 7.2 %. Similarly, the unemployment rate in Georgia fell each year to a period low in 2019. An increase of 6.9 percentage points left the 2020 unemployment rate at 18.5 %, the period high. A break in the time series may have had an effect on the 2020 data. The overall unemployment level was higher in Georgia than other ENP-East countries, with the exception of Armenia.

Moldova's unemployment also declined from 2010 to 2018. In 2019, there was a break in the time series, which may have an impact on the large increase in that year, at 5.1 %, while the 2020 figure was 3.8 %. Unemployment in Armenia has been relatively stable since 2011, with the 2020 value at 18.2 %. It remains at a relatively high level compared with other ENP-East countries. Ukraine’s unemployment finished the period slightly higher than its beginning; the change in geographical coverage of data from 2014 and 2015 can perhaps be seen in higher unemployment in the period 2014-2017, although changes in the data definition also occurred at the time. The period high, 9.5 % was recorded in both 2017 and 2020.

Belarus’ data from 2010-2015 are not considered comparable with later years, as they are based upon registered unemployment, while data since 2016 are based on a survey. Unemployment has declined over the period 2016-2020 to finish the period at 4.0 %. Moldova and Belarus recorded lower unemployment rates than in other ENP-East countries.

In most ENP-East countries, it is difficult to see an impact of the global Covid-19 pandemic on the overall unemployment figures. One possible exception could be Azerbaijan, which has a large hydrocarbon sector, which is affected by global energy demand. An economic impact here would have implications for employment throughout the economy. The break in the data series in 2020 may have impacted the increase in unemployment in Georgia; it is hard to draw conclusions on the basis of the data shown.

While the global financial and economic crisis led to the largest contraction in its economic activity being recorded in 2009, the EU’s unemployment rate continued to rise and peaked at 11.4 % in 2013, before falling continuously to 6.7 % in 2019. The 2020 figure was higher, at 7.1 %.

Figure 6: Unemployment rates, persons aged 15-74 years, 2010-2020
(% of labour force)
Source: Eurostat (lfsa_urgan) and (enpe_lfsa_urgan)

Long-term unemployment, measured as those unemployed for more than 12 months, is often viewed as a key indicator by policymakers. This is because it provides information concerning structural weaknesses in the labour market that may affect social cohesion and economic growth. Data are shown by gender in Table 1. Unemployment statistics in Belarus before 2016 were based on registered unemployment, which resulted in the very low long-term unemployment rates shown.

In ENP-East countries, particularly low rates of less than 2.0 % were recorded in Belarus for both men and women from the start of the survey-based data in 2016. Moldova had low long-term unemployment rates throughout the 2010-2020 period, with the partial exception of the 2010-2011 male figures. Ukraine also showed low long-term unemployment rates, with slightly higher rates recorded for men during the period 2015-2017 and for women in 2016. Azerbaijan has had consistent moderate rates of long-term unemployment for men and somewhat higher rates for women. Long-term unemployment rates for both men and women in Georgia were considerably higher over the period. Although they declined considerably over 2010-2019, there was a large increase for women in 2012. The figure for 2020 was higher than the previous year but this may be affected by a break in the data series. Armenia had the highest overall long-term unemployment among the ENP-East countries. The share of the labour force that had been unemployed for more than 12 months rose from 2010 to 2014 for women and for men from 2010 to 2016 before declining. Long-term unemployment was higher in Armenia in 2020 than 2010 for men. The difference between male and the higher female long term unemployment was greater in Armenia than in other ENP-East countries. Note that Armenia’s data had definition changes in 2018.

In the EU, long-term unemployment appears to be more susceptible to cyclical economic changes than overall unemployment. In 2020, the long-term unemployed in the EU made up 2.4 % of the male labour force and 2.5 % of the female labour force.

Table 1: Long-term unemployment rates, persons aged 15-74 years, by sex, 2010-2020
(% of labour force)
Source: Eurostat (une_ltu_a) and (enpe_lfsa_urgan2)

Table 2 provides data on the youth unemployment rate.

Across the ENP-East countries, youth unemployment rates were consistently higher than overall unemployment rates over the period 2010-2020. The highest youth unemployment and the greatest difference from overall unemployment in 2020 occurred in Georgia, where the youth unemployment rate for women was 38.2 % and for men, 40.1 %. At the same time, the unemployment rate for the whole labour force in Georgia was 18.5 %. Unemployment in Armenia stood at 31.6 % among young men and 33.3 % among young women in 2020, while the figure for the whole labour force was 18.2 %. The next highest youth unemployment rates in the ENP-East countries in 2020 occurred in Ukraine, at 19.9 % for men and 18.5 % for women. Overall unemployment in 2020 in Ukraine was 9.5 %. Youth unemployment rates in Azerbaijan were 13.1 % for young men and 17.3 % for young women in 2020, while the whole labour market rate was 7.2 %. The lowest unemployment rates for young women were in Belarus and Moldova (10.1 % and 12.3 % respectively); for young men in Moldova, Azerbaijan and Belarus (9.9 %, 13.1 % and 13.8 % respectively). Youth unemployment for women was higher than for men in 2020 in Azerbaijan, Moldova and Armenia.

In 2010, 22.1 % of the EU’s male labour force aged 15 to 24 years and 20.9 % of the corresponding female labour force were without work. These figures had fallen to 16.9 % and 16.6 % respectively by 2020. Nevertheless, youth unemployment in 2020 remained much higher than the average rate recorded for the whole labour force, at 7.1 %.

Table 2: Youth unemployment rates, persons aged 15-24 years, by sex, 2010-2020
(% of labour force)
Source: Eurostat (lfsa_urgan) and (enpe_lfsa_urgan)

Source data for tables and graphs

European Neighbourhood Policy — East countries — labour market: tables and figures

Data sources

The data for ENP-East countries are supplied by and under the responsibility of the national statistical authorities of each country on a voluntary basis. The data that are presented in this article result from an annual data collection cycle that has been established by Eurostat. These statistics are available free-of-charge on Eurostat’s website, together with a range of different indicators covering most socio-economic areas.

The main source for European labour force statistics is the European Union labour force survey (EU LFS). This household survey is carried out in all EU Member States in accordance with European legislation; it provides figures at least each quarter.

Tables in this article use the following notation:

Value in italics	data value is forecast, provisional or estimated and is therefore likely to change;
:	not available, confidential or unreliable value.

Context

Labour market statistics are increasingly used to support policymaking and to provide an opportunity to monitor participation in the labour market. In the aftermath of the global financial and economic crisis, these statistics are used to monitor the effects of the crisis on labour markets, which tend to lag behind changes in economic activity.

Social policymakers often face the challenge of remedying uncertainty in employment and high unemployment by designing ways to increase employment opportunities for specific groups in society, such as the young, those having working in certain economic activities, or those living in low employment regions.

The European employment strategy (EES) aims to create more and better jobs throughout the EU. It now constitutes part of the Europe 2020 growth strategy. The EES is implemented in four steps: 1. Employment guidelines are common priorities and targets for employment policies proposed by the Commission, agreed by national governments and adopted by the EU Council. 2. The Joint employment report (JER) is based on (a) the assessment of the employment situation in Europe (b) the implementation of the Employment Guidelines and (c) an assessment of the Scoreboard of key employment and social indicators. It is published by Commission and adopted by the EU Council. 3. National Reform Programmes (NRPs) are submitted by national governments and analysed by the Commission for compliance with Europe 2020. (database – NRPs prior to 2011) 4. Based on the assessment of the NRPs the Commission publishes a series of Country reports, analysing Member States' economic policies and issues Country-specific recommendations.

The European Commission’s European Social Fund Plus (ESF) 2021-2027 contributes to the EU’s employment, social, education and skills policies, including structural reforms to tackle the socio-economic crisis caused by the COVID-19 pandemic. The Fund will support the EU’s green, digital and resilient recovery from the crisis by driving investment in jobs, skills and services. the ESF+ will promote the horizontal principles of gender equality, respect for fundamental rights, equal opportunities and non-discrimination. ESF+ funding will focus on: • Social inclusion • Education and skills • Employment

In June 2016, the European Commission adopted a Skills Agenda for Europe (COM/2016/0381 final) under the heading ‘Working together to strengthen human capital, employability and competitiveness’. This was intended to ensure that people develop the skills necessary for now and the future, in order to boost employability, competitiveness and growth across the EU. Its objectives are set for 2025.

The open method of coordination (OMC) enables the coordination of the Member States' employment policies towards common objectives for the labour market, without requiring binding European legislative measures. Through the peer reviews and the central role of the Council, it helps spreading good practices among Member States and achieving greater convergence towards the main EU goals. The OMC process for national employment policies is an integral part of the annual European Semester cycle of economic policy coordination.

On 2 July 2021, the European Commission and the EU High Representative for Foreign Affairs and Security Policy presented the Eastern Partnership: a Renewed Agenda for cooperation with the EU’s Eastern partners. This agenda is based on the five long-term objectives, with resilience at its core, as defined for the future of the Eastern Partnership in the Joint Communication Eastern Partnership policy beyond 2020: Reinforcing Resilience – an Eastern Partnership that delivers for all in March 2020. It is further elaborated in the Joint Staff Working Document Recovery, resilience and reform: post 2020 Eastern Partnership priorities. It will be underpinned by an Economic and Investment plan. The Joint Declaration of the Eastern Partnership Summit ‘Recovery, Resilience and Reform’ of 15 December 2021 reaffirms strong commitment to a strategic, ambitious and forward-looking Eastern Partnership.

In cooperation with its ENP partners, Eurostat has the responsibility ‘to promote and implement the use of European and internationally recognised standards and methodology for the production of statistics, necessary for developing and monitoring policy achievements in all policy areas’. Eurostat undertakes the task of coordinating EU efforts to increase the statistical capacity of the ENP countries. Additional information on the policy context of the ENP is provided here.