Statistics Explained

Archive:Employed people and job starters by economic activity and occupation

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Data extracted in December 2020

Planned article update: April 2021

Highlights


At EU level, the number of newly employed in the third quarter of 2020 was very close to the number recorded during the financial recession from the late 2000s.
After its spike to an all-time high level in the second quarter of 2020, the number of recent job leavers in the EU fell to an all-time low in the third quarter of 2020.
Among the EU countries, Slovakia stood as the country with the greatest decrease in the number of recent job starters and the greatest increase in the number of recent job leavers between the last quarter of 2019 and the third quarter of 2020.
[[File:Recent job starters and leavers - quarterly statistics V2.xlsx]]

Recent job starters and recent job leavers, EU-27, Q1 2008 - Q2 2020 (in million persons, age group 20-64, seasonally adjusted data)

Since the outbreak of the COVID-19 pandemic in early 2020 in Europe, many companies have been struggling with balancing the need to protect their clients and employees from infection and to find a way to continue to produce goods and provide services to preserve their existence. Many were not able to maintain the same levels of production as before the COVID crisis. To mitigate the social impact of the pandemic, the European Union (EU) and national governments introduced a variety of measures, including fiscal support, to protect people from job loss in the situation of less productive economy. Although protective measures to preserve the level of employment have been taken, a more cautious policy of enterprises in regards to hiring new employees could be expected. Also, there may be more reluctance to start new businesses, which could have also led to more employed people.

The aim of this article is to shed light on this topic, and to report about developments for recent job starters. Information on recent job leavers is also presented to complement the picture of the labour market dynamics. The two groups are defined in the following way:

  • Recent job leavers are people who reported that they left their job in the last 3 months before the interview;
  • Recent job starters are people who reported that they started their employment in the last 3 months before the interview.


This article is based on quarterly results from the European Labour Force Survey (EU-LFS). Both the European and country approaches are presented in this article, which show the effect of the COVID-19 crisis at the global EU level and at national level in the individual Member States, as well as in three EFTA countries (Iceland, Norway and Switzerland), the United Kingdom and four candidate countries (Montenegro, North Macedonia, Serbia and Turkey).

This article is part of the online publication Labour market in the light of the COVID 19 pandemic - quarterly statistics along with the articles Employment, Absences from work and Hours of work.



Full article


Recent job leavers outnumbered recent job starters in Q2 2020

Figure 1 presents the development of the numbers of recent job starters and recent job leavers over the period 2006-2020 in the EU. It is visible that the levels of the two groups have moved both closer together as well as further apart from each other over time. For example, in the second quarter of 2009, a period that is associated with the financial recession from the late 2000s, the numbers of recent starters and leavers had a close distance between each other. In this quarter, 6.6 million people were newly employed, whereas 5.0 million had recently left their jobs.

However, despite the proximity of these two groups over the years, the number of recent job leavers has never surpassed that of recent job starters, at least up to the second quarter of 2020 (Q2 2020). During this quarter, recent job leavers outnumbered recent job starters by 1.4 million, reaching a record high for the whole time series of 6.3 million. In contrast, the number of recent job starters in the same quarter reached a historical low of 4.8 million.

The situation during the third quarter of 2020 (Q3 2020) changed, the number of recent jobs starters was again above those of recent job leavers. In detail, during this quarter there were 6.6 million recent job starters against 3.9 million recent job leavers.

Figure 1: Recent job starters and recent job leavers, EU-27, Q1 2006 - Q3 2020
Source: Eurostat (lfsi_sta_q), (lfsi_lea_q)

When comparing the results for Q3 2020 with the long-term trend, is visible that the number of recent job leavers in Q3 2020, reached an all-time low level since the first quarter of 2006. However, the number of recent job starters in the same quarter, although substantially higher than Q2 2020, was still below its values recorded for the preceding period from the fourth quarter of 2013 to the first quarter of 2020. Moreover, the number of newly employed in Q3 2020 was very similar to the number recorded during the financial recession from the late 2000s.

Focus on recent job starters

At EU level, during the first quarter of 2020 (Q1 2020), the number of recent job starters decreased with -3.4 % in comparison with the first quarter of 2019 (Q1 2019). The situation among the EU Member States was divers (see Figure 2); however, the majority of them (19 out of 26 with available data) also experienced a reduction of the number of newly employed between Q1 2019 and Q1 2020. The decrease was the most tangible in Croatia (-30.9 %), Bulgaria (-32.4 %) and Greece (-36.5 %). In contrast, in seven EU countries, the number of recent job starters increased between Q1 2019 and Q1 2020, among them the most in Latvia (+15.7 %), Romania (+28.5 %) and Slovenia (+42.5 %).

Figure 2: Quarterly change of recent job starters, from Q1 to Q3 2020, each quarter compared with the same quarter in the previous year
Source: Eurostat (lfsi_sta_q)

The decrease in the number of recent job starters in the EU between the second quarter of 2020 (Q2 2020) and the second quarter of 2019 (Q2 2019) was ten times larger than the decrease between the first quarters of 2019 and 2020. The number of people who had started a job recently at EU level in Q2 2020 was with -34.6 % less than in Q2 2019. Moreover, all Member States in Q2 2020 also had a reduction of the number of recent job starters in comparison with Q2 2019. This reduction even exceeded 50 % in some of them, namely, Cyprus (-53.1 %), Latvia (-54.5 %), Croatia (-60.2 %, low reliability), Malta (-61.6 %, low reliability) and Greece (-61.8 %).

Looking at EU level, the change of the number of newly employed between the third quarter 2019 (Q3 2019) and the third quarter of 2020 (Q3 2020) was smaller than the change between the second quarters of 2019 and 2020, but still had a negative sign: -11.0 %. Focusing on EU country level, between Q3 2019 and Q3 2020, 20 Member States (out of 26 with available data) also had a negative quarterly change, among them the decrease in the number of newly employed was the most pronounced in Slovenia (-22.4 %), Ireland (-23.1 %), Portugal (-32.3 %) and Slovakia (-33.8 %). In contrast, in the remaining six EU countries, the number of recent job starters increased between Q3 2019 and Q3 2020, suggested by a positive quarterly change, which was the highest in Hungary (+26.1 %), Bulgaria (+27.5 %) and Greece (+73.3 %). Note that Greece had the largest decrease in the number of recent job starters from Q1 and Q2 2019 to Q1 and Q2 2020, however, experienced the largest increase in the number of this category of workers from Q3 2019 to Q3 2020.

The development between Q3 2019 and Q3 2020 for men and women among the population of recent job starters is presented in Figure 3. In terms of percentage change between those two quarters, at the EU level, both genders experienced a decrease. However, the decrease for men was more pronounced than the decrease for women: -12.8 % for men compared with -9.1 % for women.

Figure 3: Quarterly change of recent job starters by sex, Q3 2020 compared with Q3 2019
Source: Eurostat (lfsi_sta_q)

Considering only men in the population of recent job starters, seven EU countries (out of 26 with available data) saw an increase in their number between Q3 2019 and Q3 2020. The increase ranged from +58.4 % in Greece to +1.0 % in Austria. In the remaining 19 EU countries, the number of men who had started a job recently decreased. The least, with a decrease of less than 2 %, in Czechia (-0.2 %), Cyprus (-1.1 %) and Denmark (-1.9 %) and the most, with a decrease of more than 20 %, in Slovenia (-22.3 %), Ireland (-22.7 %), Slovakia (-31.2 %) and Portugal (-38.1 %).

The number of women among recent job starters increased in five Member States. The increase was the most significant in Greece (+90.6 %), where there were almost twice as many women who had started a job recently in Q3 2020 than in Q3 2019. In contrast, the number of women among recent job starters in Poland increased the least with +3.7 %.

Note also, that the increase for women recent job starts was more substantial than for the men in the same category. The situation in Bulgaria was similar. It is also worth noting that those two countries, Greece and Bulgaria, recorded the largest increase in the total number of newly employed between Q3 2019 and Q3 2020.

In the vast majority of EU countries (the remaining 21), the number of women who had started a job recently decreased between those two quarters. The decrease ranged from less than 5 % in Cyprus (-4.1 %), Lithuania (-3.3 %) and Austria (-0.1 %) to more than 25 % in Luxembourg (-25.9 %), Portugal (-26.5 %), Croatia (-30.2 %, low reliability) and Slovakia (-36.0 %).

Focus on recent job leavers

Between Q1 2019 and Q1 2020, the number of recent job leavers increased with +15.0 % at EU level. The greatest part of Member States (18 out of 25 with available data), also experienced an increase in the population of recent ex-workers. This increase was the most significant in Slovenia and Romania where the number of people how had left their jobs recently in Q1 2020, respectively, almost doubled and tripled the corresponding number in Q1 2019. On the other side of the scale, with not so pronounced increases of less than 10 %, stood Czechia (+8.7 %), Denmark (+4.1 %) and Finland (+1.6 %). In contrast, in seven EU countries, the number of recent job leavers decreased between Q1 2019 and Q1 2020: the least in Sweden (-0.1 %), and the most in the Netherlands (-10.8 %).

Figure 4: Quarterly change of recent job leavers, from Q1 to Q3 2020, each quarter compared with the same quarter in the previous year
Source: Eurostat (lfsi_sta_q)

When Q2 2020 is compared with Q2 2019, the quarterly change takes much more significant dimensions than if Q1 2020 and Q1 2019 are set side by side. This could be also observed at EU level, where the number of recent job leavers in Q2 2020 was with +71.9 % higher than in Q2 2019. Only one Member State experienced a reduction of this population, namely, Croatia (-1.2 %, low reliability). Also, only one Member State had an increase in the number of recent job leavers of less than 20 %: Cyprus (+ 5.6 %). In contrast, during Q2 2020, people who had left their jobs recently in Hungary and Slovakia tripled, and in Romania and Ireland quadrupled the corresponding number of Q2 2019. However, the largest increase could be found in Bulgaria: six times more recent job leavers in Q2 2020 than in Q2 2019.

The quarterly change of the number of recent job leavers between Q3 2019 and Q3 2020 (-15.0 %) was with the same size but with a different direction than the quarterly change between Q1 2019 and Q1 2020 (+15.0 %). Moreover, the majority of EU Member States (18 out of 25 with available data) had a reduction of the population of new ex-workers in Q3 2020 compared with Q3 2019. The reduction was the most tangible, i.e. more than 25 %, in Bulgaria (-25.8 %), Estonia (-31.3 %) and Ireland (-34.2 %). Note, that the quarterly change in Bulgaria and Ireland had a quite dynamic evolution from Q2 2019 to Q2 2020 compared with the corresponding from Q3 2019 to Q3 2020. On the other end, with the smallest decrease in the population of recent job leavers were Lithuania (-1.2 %), followed by Croatia (-5.6 %) and Cyprus (-5.7 %). In the remaining seven EU countries, the number of people in the population of recent job leavers increased, with an increase ranging from +9.9 % in Denmark to +136.5 % in Slovakia. This makes Slovakia the Member State with the largest increase in the number of recent job leavers, and also with the largest decrease in the number of recent job starters between Q3 2019 and Q3 2020.

The last figure of the article displays the evolution between Q3 2019 and Q3 2020 of the number of men and women among recent job leavers (Figure 5). At EU level, the development for both genders was similar. The number of men among recent job leavers decreased by -14.7 %, whereas the number of women decreased by -15.2 %.

Figure 5: Quarterly change of recent job leavers by sex, Q3 2020 compared with Q3 2019
Source: Eurostat (lfsi_sta_q)

Behind this global evolution at EU level, a huge difference between genders among the Member States exists. The difference was the most visible in Slovakia, the EU country with the highest increase both in the number of men and women among recent job leavers between Q3 2019 and Q3 2020. In Slovakia, men who had left their jobs recently in Q3 2020 were three times more than in Q3 2019, while women who had done the same were two times more. Following Slovakia, Latvia and Cyprus stood as the EU countries with the widest gap between genders. Nevertheless, the evolution in the latter two countries had a different direction for women than for men. In Latvia, the number of men in the population of recent job leavers increased by +35.8 %, while the number of women decreased by -44.1 %. In Cyprus, the number of men increased by +44.0 %, and the number of women decreased by -21.3 %.

Finally, the number of men among recent job leavers decreased in 12 EU countries (out of 24 with available data), while the corresponding number of women decreased in 17. The decrease for men ranged from -36.6 % in Ireland to -6.3 % in Sweden, and the decrease for women ranged from -44.1 % in Estonia to -0.8 % in Finland.


Source data for tables and graphs

Data sources

All figures in this article are based on quarterly results from European Labour Force Survey (EU-LFS).

Source: The European Union Labour Force Survey (EU-LFS) is the largest European household sample survey providing mostly quarterly and annual results on labour participation of people aged 15 and over as well as on persons outside the labour force. It covers residents in private households. Conscripts in military or community service are not included in the results. The EU-LFS is based on the same target populations and uses the same definitions in all countries, which means that the results are comparable between countries.

European aggregates: EU refers to the sum of the EU-27 Member States. If data is unavailable for a country, the calculation of the corresponding aggregates is computed with estimates. Such cases are indicated.

Country note: In Germany, from the first quarter of 2020 onwards, the Labour Force Survey (LFS) is part of a new system of integrated household surveys. Unfortunately, technical issues and the COVID-19 crisis has had a large impact on data collection processes, resulting in low response rates and a biased sample. For this reason, additional data from other integrated household surveys has been used in addition to the LFS subsample, to estimate a restricted set of indicators for the first three quarters of 2020, for the production of LFS Main Indicators. These estimates have been used for the publication of German results, but also in the calculation of EU and EA aggregates. By contrast, EU and EA aggregates published in the Detailed quarterly results (showing more and different breakdowns than the LFS Main Indicators) have been computed using only available data from the LFS subsample. As a consequence, small differences in the EU and EA aggregates in tables from both collections may be observed. For more information, see here.

For more information on recent job starters and leavers, please consult pages 22, 41-43 and 80-82 from EU Labour Force Survey Explanatory Notes

Also, five different articles on detailed technical and methodological information are available from the overview page of the online publication EU Labour Force Survey.

Context

The COVID-19 health crisis hit Europe in January and February 2020, with the first cases confirmed in Spain, France and Italy. COVID-19 infections have now been diagnosed in all European Union Member States. To fight the pandemic, EU Member States have taken a wide variety of measures. From the second week of March, most countries closed retail shops apart from supermarkets, pharmacies and banks. Bars, restaurants and hotels have also been closed. In Italy and Spain, non-essential production was stopped and several countries imposed regional or even national lock-down measures which further stifled the economic activities in many areas. In addition, schools were closed, public events were cancelled and private gatherings (with numbers of persons varying from 2 to 50) were banned in most Member States.

The large majority of the prevention measures were taken during mid-March 2020 and most of the measures and restrictions were kept for the whole period of April and May 2020. The first quarter of 2020 is consequently the first quarter in which the labour market across the EU has been affected by COVID-19 measures taken by the Member States.

Employment and unemployment as defined by the ILO concept are, in this particular situation, not sufficient to describe the developments taking place in the labour market. In this first phase of the crisis, active measures to contain employment losses led to absences from work rather than dismissals, and individuals could not search for work or were not available due to the containment measures, thus not counting as unemployed.

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