The European Central Bank has published research finding that the euro area labour force expanded by 7.8 million between the fourth quarter of 2019 and mid-2025, reaching 173 million, as higher participation rates and sustained net migration offset demographic ageing and supported more than half of GDP growth in most quarters since the third quarter of 2021. The paper identifies older workers and migrants as the main drivers of recent labour force growth, and says the resulting shift in workforce composition has helped lower aggregate unemployment and ease labour shortages even though average hours worked per employee remain below pre-pandemic levels in several countries. The increase reflects both a 5.8 million rise in the working-age population and an increase in the participation rate from 64.6% in the fourth quarter of 2019 to 66.2% in the fourth quarter of 2025. Over that period, the number of workers aged 55 to 74 rose by 20.2%, the share of workers with tertiary education increased from 34% to 39%, and the female labour force grew faster than the male labour force, although a 9 percentage point participation gap remained. Foreign workers, who represented about 8% of the labour force in 2021, accounted for more than half of labour force growth over the following four years, adding 4.2 million workers and lifting their share to 10%. The participation rate of non-EU citizens rose from roughly 64.1% in 2022 to almost 66.6% in 2025, exceeding that of euro area nationals since 2024. The ECB says these inflows have largely filled high-vacancy sectors rather than raised aggregate unemployment, although skills matching remains weak, with a 40% overqualification rate for non-EU citizens in 2024.
European Central Bank 2026-05-13
European Central Bank research finds euro area labour force rose by 7.8 million since 2019 driven by older workers and migration
The European Central Bank published research showing the euro area labour force grew by 7.8 million between late 2019 and mid-2025 to 173 million, with higher participation and net migration offsetting demographic ageing and supporting more than half of GDP growth in most quarters since late 2021. The paper finds older workers and migrants are the main drivers of labour force growth, helping reduce unemployment and ease labour shortages, while highlighting persistent issues such as below pre-pandemic average hours worked in several countries, a 9 percentage point gender participation gap, and a 40% overqualification rate among non-EU citizens.