Hidden unemployment in Europe: the real situation is worse than the statistics suggest

Official unemployment statistics in Europe hide much more than meets the eye. Outside the reports are millions of people who are ready to work but cannot find a place in the economy. Why are countries with strong economies facing growing ‘invisible’ unemployment, and what lies behind the Eurostat figures? Find out which European countries are actually losing their labour potential

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Officially, there are 13.3 million unemployed people aged 15 to 74 in the European Union. However, if we add to this number those who are willing to work but, for various reasons, are not looking for work, are working part-time or cannot start work immediately, the picture changes dramatically. According to Euronews, which cites Eurostat, taking into account ‘hidden unemployment,’ the total number of underutilised labour resources in Europe reaches 26.8 million people.

What is ‘hidden unemployment’?

This term refers to people who are not formally classified as unemployed but are not actually involved in the economy. These are:

— citizens who want to work but are not actively looking for work;

— part-time employees who are forced to work less than they want;

— applicants who are ready to work but are unable to start immediately.

These groups, together with the officially unemployed, form the ‘underutilisation of labour’ indicator, which stood at 11.7% across the EU in the second quarter of 2025.

In which countries is the level of ‘hidden unemployment’ higher, and in which is it lower?

According to aggregate data, the lowest level of hidden unemployment is recorded in Poland — only 5.1%. The situation is also stable in Slovenia, Malta and Bulgaria, where the indicator does not exceed 6%.

At the other end of the spectrum is Turkey, where hidden unemployment reaches 25.8%, making it the absolute leader in Europe. High values are also seen in Finland (19.5%), Sweden (18.8%), Spain (18.6%), Bosnia and Herzegovina (17.1%) and Italy (15.4%).

It is worth noting that Poland is currently showing a historic unemployment rate. This level in the country has fallen to 2.6%. This effect was achieved, in particular, due to Ukrainian refugees.

Read also: Where in Poland is the greatest shortage of workers: updated data from GUS

Among the largest EU economies, Germany stands out, with a below-average labour shortage of 7.8%. By comparison, in France, Italy and Spain, it exceeds 15%.

Why people in the EU are giving up looking for work

Experts note that long-term unemployment demotivates citizens: many do not believe that they will be able to find a decent job through public employment services.

Among the reasons are weak social support, a lack of infrastructure for family care, and traditional gender attitudes. In addition, the shortage of quality jobs and the mismatch of qualifications make the labour market inert: even educated candidates often cannot find use for their skills.

Where are most of those who want to work but are not looking for a job?

This category is the second largest factor in the underutilisation of labour in Europe. The range is enormous: from 0.3% in the Czech Republic to 12.3% in Turkey.

Turkey stands out in that the proportion of such people (8.6%) even exceeds the official unemployment rate. High values are also recorded in Italy (6.6%) and Sweden (4.4%), while in Spain it is only 2.8%, despite one of the highest unemployment rates in the EU.

Countries with the highest share of part-time employment

According to Eurostat, part-time work is most common in:

▪️ The Netherlands (5.1%)

▪️ Finland (4.8%)

▪️ Ireland (4.7%)

▪️ More than 4% is also observed in Switzerland, Turkey and Spain.

In some countries (e.g. the Netherlands and Turkey), the officially unemployed account for only a third of all underutilised workers, which shows that standard statistics do not reflect the real state of the labour market.

Reminder! Most Ukrainians in Poland have stable jobs, but only a small proportion feel fully integrated into local society. This poses risks for the Polish economy, especially in sectors with labour shortages. Find out what percentage of Ukrainians feel fully integrated and what consequences this has for Poland.