In the wake of the economic downturn, a number of jobs markets in the European Union (EU) are starting to see a return to hiring.

Employment estimates from Eurostat for the second quarter of 2010 showed that the number of people in work across both the eurozone and the 27 EU members states remained relatively stable compared with the previous three months.

Although the figure for those in jobs across the region is 0.6 per cent lower year-on-year, labor markets are showing signs of stabilising, while many economies have returned to gross domestic product growth following recessions.

In addition, average hourly wages across the EU increased during the period in question, rising by 1.5 per cent compared with the first three months of 2010.

However, the picture remains mixed, with some industries such as agriculture, manufacturing and construction continuing to experience falls, while hiring has started to pick up in sectors including financial and business services, health, education and public administration.

European markets gaining confidence

Business and consumer confidence within the eurozone climbed to its highest level for nearly three years in September with a strong gain in Germany, according to a survey by the European Commission, with the economic sentiment indicator standing at 103.2.

The index was pushed up by Germany, which has seen strong economic growth in recent months. The country witnessed a 0.5 per cent year-on-year increase in employment during August 2010 to 40.3 million following a series of rises in recent months.

Further improvements in confidence were also reported in the Netherlands, while levels of optimism in France remained relatively stable during the months.

Slower recovery in some states

While some nations such as Portugal, Italy and Ireland have seen slower rates of recovery, economic conditions in these are also showing signs of improvement. A recent report by the Organisation for Economic Co-operation and Development (OECD) forecast Portugal will emerge from the crisis, having "made major progress in modernising its economy" over recent years.

Meanwhile, the UK has seen a recent dip in confidence as indicators suggest its recovery from the downturn may be slower than initially anticipated. The results of the government's spending review will be published at the end of October and are expected to include plans for substantial cuts to public sector budgets.

Workers more confident of finding jobs

A recent study by Randstad showed that global confidence among employees has risen with a higher number of individuals in employment hopeful of finding a new job if they left their current position.

The research indicated that German workers were substantially more positive about their prospects for acquiring a different or comparable job. In addition, the latest Workmonitor report showed employers in western nations are particularly supportive of personal career development.

EU 2020 employment goals

In preparing for the future, EU ministers have emphasized the importance of jobs creation and have set a goal to raise the employment rate across the region to 75 per cent by 2020.

Additionally, the Youth on the Move flagship initiative was recently unveiled to increase access to skills, experience and knowledge among this demographic. It is part of efforts to cut the number of early school leavers to ten per cent and raise the proportion of young people securing tertiary level or equivalent qualifications to 40 per cent.

So, although employment conditions vary widely between EU states, as many struggle to reduce their high budget deficits in the wake of the financial markets crisis, there is evidence of recovery and increasing economic activity, which may boost recruitment figures. Jobs markets in nations such as Poland and Germany appear to be bouncing back from the downturn, while growth is sluggish in other countries as markets remain cautious, but measures are being put in place to generate new employment opportunities.