Jobs Advance, Confidence Hesitates Across Europe

Fresh data from Europe reveal a clear split between how households feel and how labor markets are actually performing.

Employment trends are improving in parts of the region, yet confidence among consumers remains hesitant, pointing to a recovery that is progressing unevenly beneath the surface.

France: Relief Feels Distant for Consumers

In France, consumer confidence remained unchanged at 90 in January, well below the long-term norm of 100. Households expressed slightly better expectations for their future financial situation, but views on both past and future living standards stayed firmly negative. Willingness to make major purchases continued to sit in contractionary territory, showing persistent restraint in spending behavior.

Price pressure expectations eased modestly, which may offer gradual relief. Still, perceptions around unemployment showed no improvement, keeping concerns over job security intact. Confidence is stabilizing, but not strengthening in a way that would materially support consumption.

Spain: A Clear Bright Spot in the Data

Spain presented a sharply different signal as the unemployment rate fell below 10% for the first time since 2008, marking its lowest level in 18 years. Employment reached a record high, while the number of unemployed dropped decisively, mainly because of private-sector hiring.

Labor market momentum in Spain has gathered pace, offering a tangible contrast to the softer sentiment seen elsewhere in the region.

Why Jobs Alone are Not Enough

Stronger employment conditions provide a necessary foundation for growth, but weak household confidence suggests spending may remain limited. Until sentiment begins to align more closely with labor market improvements, economic momentum across the region is likely to stay uneven rather than synchronized.

Sources: Insee / INE

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