Quarterly national accounts - GDP and employment

Data extracted on 18 October 2024.

Planned article update: 20 January 2025.

Highlights

GDP up by 0.2% and employment up by 0.1% in the euro area in the second quarter of 2024.

GDP up by 0.3% and employment up by 0.1% in the EU in the second quarter of 2024.

GDP and employment growth rates (%, change over the previous quarter, based on seasonally adjusted data, 2024Q2)
Source: Eurostat (namq_10_gdp) and (namq_10_a10_e)

This article presents key messages and data extractions based on Eurostat's updated estimation of quarterly gross domestic product (GDP) for the second quarter of 2024 in the European Union (EU) and euro area (EA-20) released on 18 October 2024. This completes a sequence of quarterly estimates of European main national accounts aggregates (including employment) that are based on available country data (see previous news releases).

Compared with the previous release on 6 September 2024, the growth rate for GDP remained unchanged for the euro area and was revised up to 0.3% from 0.2% for the EU. The growth rate for employment in persons was revised down to 0.1% from 0.2% for the euro area and remained unchanged for the EU.

Following recommendations for a harmonised European revision policy for national accounts and balance of payments, EU countries are carrying out a benchmark revision of their national accounts estimates in 2024. The purpose of this benchmark revision is to implement changes introduced by the amended ESA 2010 regulation, incorporate new data sources and other methodological improvements. Most of the revised quarterly and annual country data have been released by Eurostat between June and October 2024, and have been integrated in European estimates.

The European estimates published today include benchmark revisions from all EU countries but Luxembourg. The quarterly benchmark revisions of Belgium, Greece, Austria and Poland will be integrated in the European estimates that will be released on the 6th of December for reference quarter 2024Q3.

For further details, please consult the available documentation on Eurostat's website.

Please note that particular developments of GFCF that are observed in the aggregates are often related to the activities of MNEs in the Irish economy.

Full article

Quarterly GDP growth

GDP up by 0.2% in the euro area and by 0.3% in the EU

According to an estimate (see Data sources below) published by Eurostat, seasonally adjusted GDP increased by 0.2% in the euro area and by 0.3% in the EU in the second quarter of 2024, compared with the previous quarter. In the first quarter of 2024, GDP had increased by 0.3% both in the euro area and in the EU.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 0.6% in the euro area and by 0.8% in the EU in the second quarter of 2024, after an increase of 0.5% in the euro area and 0.6% in the EU in the previous quarter.

During the second quarter of 2024, GDP in the United States increased by 0.7% compared with the previous quarter (after +0.4% in the first quarter of 2024). Compared with the same quarter of the previous year, GDP increased by 3.0% (after +2.9% in the previous quarter).

Table 1: Growth rates of GDP in volume (%, change based on seasonally adjusted data)
Source: Eurostat (namq_10_gdp) and (naidq_10_gdp) for Japan and US data

GDP growth by EU country

Among the EU countries, the highest increases of GDP were recorded in Poland (+1.5%), Denmark and Greece (both +1.1%) in the second quarter of 2024, while the highest decreases were observed in Ireland (-1.0%), Austria (-0.4%) and Sweden (-0.3%).

Figure 1: GDP growth rates (%, change over the previous quarter, based on seasonally adjusted data, 2024Q2)
Source: Eurostat (namq_10_gdp)

GDP components and contributions to growth

During the second quarter of 2024, household final consumption expenditure increased by 0.1% in the euro area and by 0.2% in the EU (after +0.3% in both zones in the previous quarter). Government final consumption expenditure increased by 0.9% in both the euro area and the EU (after +0.2% in both zones in the previous quarter). Gross fixed capital formation decreased by 2.5% in the euro area and by 2.2% in the EU (after -2.2% in the euro area and -2.1% in the EU in the previous quarter). Exports increased by 1.5% in both the euro area and the EU (after +0.9% in the euro area and +0.6% in the EU in the previous quarter). Imports increased by 0.8% in the euro area and by 0.9% in the EU (after -0.7% in the euro area and -0.5% in the EU in the previous quarter).

Household final consumption expenditure had a negligible contribution to GDP growth for the euro area (0.0 percentage points (pp)) and a positive contribution to GDP growth for the EU (+0.1 pp). The contribution from government final expenditure was positive in both zones (+0.2 pp). The contribution from gross fixed capital formation was negative for both the euro area and the EU (-0.5 pp). Changes in inventories had positive contributions to GDP growth both in the euro area and in the EU (+0.1 pp). The contribution of exports less imports was positive both for the euro area and for the EU (+0.4 pp).

Figure 2: Decomposition of GDP growth by expenditure aggregates (contributions to growth (over the previous quarter) in percentage points, 2023Q3 - 2024Q2)
Source: Eurostat (namq_10_gdp)

Quarterly employment growth

Number of employed persons up by 0.1% both in the euro area and the EU

The number of persons employed increased by 0.1% in both the euro area and the EU in the second quarter of 2024 compared with the previous quarter. In the first quarter of 2024, employment had increased by 0.2% in the euro area by 0.3% and the EU. Hours worked increased by 0.2% in the euro area and by 0.1% the EU in the second quarter of 2024 (after +0.3% in both the euro area and the EU in the first quarter of 2024).

Compared with the same quarter of the previous year, employment based on persons increased by 0.9% in both the euro area and the EU in the second quarter of 2024 (after +1.1% in the euro area and +1.0% in the EU in the first quarter of 2024). Number of hours worked increased by 1.4% in the euro area and by 1.2% in the EU in the second quarter of 2024, compared with the same quarter of the previous year (after +0.2% in the euro area and 0.0% in the EU in the first quarter of 2024).

These data on employment provide a picture of labour input consistent with the output and income measure of national accounts.

Table 2: Growth rates of employment in persons (%)
Source: Eurostat (namq_10_a10_e)

Table 3: Growth rates of employment in hours worked (%)
Source: Eurostat (namq_10_a10_e)

Figure 3: Growth of employment in persons and hours worked (% change over the previous quarter, based on seasonally adjusted data, 2008Q1 - 2024Q2)
Source: Eurostat (namq_10_a10_e)

Employment growth by EU country

Among EU countries, the highest increases in employment in persons were observed in Ireland (+1.1%), Lithuania (+1.0%), Estonia and Croatia (both +0.8%). Romania (-0.8%) and Finland (-0.4%) recorded the highest declines in the second quarter of 2024 compared with the previous quarter.

Croatia (+2.7%), Malta (+1.8%) and Estonia (+1.5%) exhibited the highest increases in employment measured in hours worked. Finland (-1.3%), Luxembourg (-0.8%), Greece and Romania (both -0.7%) showed the highest decreases in the second quarter of 2024 compared with the previous quarter.

Figure 4: Employment growth rates (% change over the previous quarter, based on seasonally adjusted data, 2024Q2)
Source: Eurostat (namq_10_a10_e)

Employment levels

Employment in persons increased by 0.3 million in the euro area and by 0.2 million in the EU

Based on seasonally adjusted figures, Eurostat estimates that in the second quarter of 2024, 219.0 million people were employed in the EU, of whom 170.6 million were in the euro area.

Figure 5: Evolution of employment in persons and hours worked (index 2015=100, based on seasonally adjusted data, 2008Q1 - 2024Q2)
Source: Eurostat (namq_10_a10_e)

Labour productivity

The combination of GDP and employment data allows an estimation of labour productivity.

In the second quarter of 2024, productivity based on persons decreased by 0.3% in the euro area and remained stable in the EU compared with the same quarter of the previous year.

Compared with the same quarter of the previous year, productivity based on hours worked decreased by 0.3% in the euro area and increased by 0.1% in the EU.

Figure 6: Labour productivity growth rates, (%, change over same quarter of the previous year, based on seasonally adjusted data, 2008Q1 - 2024Q2)
Source: Eurostat (namq_10_lp_ulc)

Source data for tables and graphs

Quarterly national accounts - GDP and employment 2024Q2

Data sources

Eurostat collects GDP and employment data in the framework of ESA 2010. Additional information on the dissemination of ESA 2010 data is available under publications on the dedicated website and in the database section National Accounts (ESA 2010).

European aggregates are published at specific release dates. The preliminary flash estimate of GDP growth of the third quarter of 2024 will be released on 30 October 2024 and will be updated on 14 November 2024. The next regular estimates of European aggregates are due on 6 December 2024 (for both GDP and employment estimates). Revision triangles for GDP for the euro area and the EU can be found here. These revision triangles are updated once per quarter.

For further details see the Eurostat website.

Context

Quarterly figures on the evolution of gross domestic product (GDP) and its main aggregates are among the most significant indicators of the state of any economy, be it at a national or European level and are of key interest to users. Typical users of quarterly national accounts (QNA) figures are market analysts, forecasters or economic and monetary policy advisors interested in assessing the state of the current business cycle.

The ESA 2010 distinguishes between 2 employment concepts depending on geographical coverage: resident persons in employment (i.e. the national scope of employment) and employment in resident production units irrespective of the place of residence of the employed person (i.e. domestic scope). The ESA 2010 recognises several employment measures: persons, hours worked and jobs. Eurostat publishes mainly employment data measured in persons and in hours worked.