Eurozone Unemployment Rate Lowest Since 2012
01 September 2015 - 7:04PM
RTTF2
Eurozone unemployment rate unexpectedly dropped in July to its
lowest level in three-and-a-half years, adding to hopes that
consumer spending would support growth amid low inflation.
The unemployment rate fell to 10.9 percent in July, after
holding steady at 11.1 percent in the previous two months, data
from Eurostat revealed Tuesday. The figure was expected to remain
at the 11.1 percent level for a fourth straight month.
The latest jobless rate is the lowest since February 2012, when
it was also 10.9 percent. In January that year, the figure was 10.7
percent.
The number of unemployed decreased by 213,000 from June to
17.532 million in July.
IHS Global Insight Economist Howard Archer said the labor market
has been helped by the Eurozone sustaining modest growth since the
fourth quarter of 2014, while business confidence has firmed
appreciably overall during 2015 so far with gains in all
sectors.
Data offered hope that the slow recovery in the region's labor
market has not gone into reverse, Jessica Hinds at Capital
Economics, said. But the bigger picture is that unemployment
remains too high to boost wage growth and inflation.
The youth unemployment rate slid to 21.9 percent in the
19-nation bloc from 23.8 percent last year. In June, the rate was
22.3 percent.
The EU28 unemployment rate also fell in July, down to 9.5
percent from 9.6 percent in June. It was the lowest rate since June
2011, Eurostat said.
The overall positive data for euro area mask divergence between
member countries. In Germany, the unemployment rate was unchanged
at its lowest level since reunification.
According to the Federal Labor Agency, the German jobless rate
held steady at 6.4 percent in August. The number of unemployed
declined by 7,000 to 2.79 million. Economists had forecast a
decline of 4,000 for August, after rising 8,000 in July.
Elsewhere, Italy's jobless rate dropped to the lowest level in
nearly two-and-a-half years in July. The seasonally adjusted
unemployment rate fell to 12.0 percent in July from 12.5 percent in
the previous month, the statistical office Istat reported.
A similar rate of 12 percent was last seen in July 2013 and a
figure lower was registered in February 2013, when it marked 11.9
percent.
The number of unemployed people decreased by 217,000 in July
from last year.
The youth unemployment rate in Italy declined to 40.5 percent in
July from 43.1 percent in June. It was the lowest youth jobless
rate since July 2013, when it was 39.9 percent.
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