In the second quarter of 2021, seasonally adjusted GDP increased by 2.0% in the euro area and by 1.9% in the EU, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union. In the first quarter of 2021, GDP had declined by 0.3% in the euro area and 0.1% in the EU. These preliminary GDP flash estimates are based on data sources that are incomplete and subject to further revisions.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 13.7% in the euro area and by 13.2% in the EU in the second quarter of 2021, after -1.3% in both zones in the previous quarter.

 Among the Member States for which data are available for the second quarter 2021, Portugal (+4.9%) recorded the highest increase compared to the previous quarter, followed by Austria (+4.3%) and Latvia (+3.7%), while Lithuania (+0.4%) and Czechia (+0.6%) recorded the lowest increase. The year-on-year growth rates were positive for all countries.

In June 2021, the euro area seasonally-adjusted unemployment rate was 7.7%, down from 8.0% in May 2021 and from 8.0% in June 2020. The EU unemployment rate was 7.1% in June 2021, down from 7.3% in May 2021 and down from 7.3% in June 2020. These figures are published by Eurostat, the statistical office of the European Union. Eurostat estimates that 14.916 million men and women in the EU, of whom 12.517 million in the euro area, were unemployed in June 2021. Compared with May 2021, the number of persons unemployed decreased by 487 000 in the EU and by 423 000 in the euro area. Compared with June 2020, unemployment decreased by 397 000 in the EU and by 339 000 in the euro area.

Youth unemployment In June 2021, 2.967 million young persons (under 25) were unemployed in the EU, of whom 2.431 million were in the euro area. In June 2021, the youth unemployment rate was 17.0% in the EU and 17.3% in the euro area, down from 17.6% and 17.9% respectively in the previous month. Compared with May 2021, youth unemployment decreased by 112 000 in the EU and by 78 000 in the euro area. Compared with June 2020, youth unemployment decreased by 152 000 in the EU and by 110 000 in the euro area.

Unemployment by gender In June 2021, the unemployment rate for women was 7.5% in the EU, down from 7.7% in May 2021. The unemployment rate for men was 6.7% in June 2021, down from 7.0% in May 2021. In the euro area, the unemployment rate for women decreased from 8.4% in May 2021 to 8.2% in June 2021 while the unemployment rate for men decreased from 7.6% in May 2021 to 7.3% in June 2021. Additional labour market indicators These estimates are based on the globally used International Labour Organisation (ILO) standard definition of unemployment, which counts as unemployed people without a job who have been actively seeking work in the last four weeks and are available to start work within the next two weeks. The COVID-19 outbreak and the measures applied to combat it have triggered a sharp increase in the number of claims for unemployment benefits across the EU. At the same time, a significant part of those who had registered in unemployment agencies was no longer actively looking for a job or no longer available for work, for instance, if they had to take care of their children. This leads to discrepancies in the number of registered unemployed and those measured as unemployed according to the ILO definition. To capture in full the unprecedented labour market situation triggered by the COVID-19 outbreak, the data on unemployment has been complemented by additional indicators, e.g. underemployed part-time workers, persons seeking work but not immediately available and persons available to work but not seeking, released together with LFS data for the first quarter of 2021.

Euro area annual inflation is expected to be 2.2% in July 2021, up from 1.9% in June according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in July (14.1%, compared with 12.6% in June), followed by food, alcohol & tobacco (1.6%, compared with 0.5% in June), services (0.9%, compared with 0.7% in June) and non-energy industrial goods (0.7%, compared with 1.2% in June).