March 3, 2025
Why are Italy and Spain hiring while the UK, Germany, and France slow? #ItalyFinance

Why are Italy and Spain hiring while the UK, Germany, and France slow? #ItalyFinance

Financial Insights That Matter

As of early 2025, job postings are increasing in Italy and Spain among Europe’s five largest economies, while the UK, Germany, and France are experiencing declines. Compared to pre-pandemic levels, Italy and Spain have shown the strongest increase, whereas job postings in the UK remain below February 2020 levels.

According to data from the hiring platform Indeed, job postings in Italy and Spain rose by 9% and 4%, respectively, on a seasonally adjusted basis in the three months leading up to February 14, 2025. In contrast, job postings declined in France (4%), Germany (2%), and the UK (2%) over the same period.

Examining these trends over the past six months and since the start of 2025 (as of 14 February), a similar pattern emerges, despite variations in the figures. One constant remains: job postings in Spain and Italy continue to rise, while Germany, the UK, and France show a downward trend.

“Italy and Spain are bucking the continued slowdown in hiring that we’re seeing in many large European economies. Rising job posting levels are a positive sign for these labour markets,” Pawel Adrjan, Director of Economic Research at Indeed, told Euronews Business.

As to the possible reasons for these trends, Pawel Adrjan explained that Italy and Spain have benefitted from the Next Generation EU funds and from growth in service exports, with Spain’s GDP growth additionally getting a boost from population growth through immigration. While employment and GDP growth in Italy slowed in 2024, hiring is benefitting from a moderate growth outlook for 2025 driven by household consumption and potential for a further boost from the EU funds.

“Both labour markets remain tighter than historically”, he added.

According to Indeed, the two occupational categories that contributed the most to the rise in job postings in Italy and Spain in the three months to 14 February 2025 were Food Preparation & Service and Software Development.

As to the declining trends in the other three countries, Adrjan said: “Structural headwinds, such as stagnant manufacturing and economic uncertainty, have slowed hiring in the UK, Germany, and France.”

Rising job postings suggest that employment will continue to rise in Italy and Spain in 2025 unless there is any negative impact from geopolitical and trade tensions that might impact the EU economy according to Adrjan.

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