Workers across Europe are more optimistic about their local job markets than at any point in the past 15 years, even as engagement at work remains among the lowest globally, according to Gallup.
In 2025, 57% of European employees said it was a good time to find a job locally, matching last year’s record high. That marks a dramatic recovery from 2011, when only 17% felt optimistic following the global financial crisis and Eurozone downturn.
Europe has posted the largest improvement in job-market optimism of any region since 2011, with a 40-point increase over the period. Countries including the Netherlands, Ireland, Greece, Denmark, Croatia, and Lithuania recorded some of the strongest gains globally.
The trend contrasts sharply with the U.S. and Canada, where employee confidence about local job opportunities has remained relatively flat over the same period.
Engagement Remains Stalled
Despite stronger confidence in the labor market, many European employees remain disconnected from their day-to-day work.
Just 12% of workers in Europe described themselves as engaged at work in 2025, well below the global average of 20%. The figure has remained largely unchanged for more than a decade.
At the same time, 15% of employees were classified as actively disengaged, meaning they feel psychologically detached from their employer. Europe is one of the only regions where disengaged workers outnumber engaged ones.
Low engagement is often linked to weaker productivity, higher turnover, and increased absenteeism — issues that carry growing importance as companies navigate AI implementation, demographic changes, and rising global competition.
A Growing Workplace Disconnect
The data indicates a widening divide between how workers feel about external opportunities and how they experience their current roles.
While many employees appear confident they could find another job, that optimism is not translating into stronger workplace motivation or satisfaction. Researchers pointed to leadership, coaching, and employee development as areas where European organizations continue to lag.
Some companies in the region are outperforming peers by prioritizing training and people management, but those practices remain unevenly adopted across the broader workforce.
As businesses redesign work around automation, aging populations, and new workforce expectations, Europe’s challenge may no longer be attracting workers — but keeping them engaged once they arrive.
