And yet we move: evidence on job-to-job transitions in the euro area

Job-to-job transitions in the euro area are a complementary indicator to standard labour market statistics. These flows, defined as transitions between jobs without a spell of unemployment, capture important adjustment mechanisms in addition to the unemployment rate. Using administrative data for Germany, Spain and France, our analysis highlights the procyclical nature of job-to-job transitions: mobility declines during downturns and rises during expansions. Heterogeneity is also evident across occupations and age groups. Lower-skilled workers are generally more mobile, although the share of higher-skilled movers has increased over time. Younger workers exhibit higher mobility because of temporary contracts, whereas the ageing of the labour force has weighed more on job-to-job transitions in recent years. These indicators provide valuable insights for monitoring labour market tightness and wage pressures. However, administrative datasets are available only with significant lags, prompting efforts to develop more timely measures of labour market flows with complementary survey measures. JEL Classification: J62, J63