Eurozone jobless rate at a record 11.2% as debt crisis carries on
Source: Agencies |
August 1, 2012, Wednesday
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Print Edition
Print Edition
THE number of people unemployed across the 17 countries that use the euro hit a record high in June, official figures showed yesterday, in a stark reminder that Europe's debt crisis has ramifications beyond the financial markets.
Eurostat, the EU's statistics office, said 17.801 million people were out of work in the eurozone in June. That was 123,000 more than May, and is the highest level since the euro was formed in 1999. The increase was the 14th in a row and means that around 2.25 million people have lost their jobs since April 2011.
Despite the increase, the seasonally adjusted unemployment rate in June was unchanged at a record 11.2 percent. Without Germany's relatively low unemployment rate of 5.4 percent, the wider figures would be much worse.
Even then, the eurozone unemployment rate is nearly 3 percentage points higher than the US's 8.2 percent. Europe's unemployment rate for May had originally been estimated at 11.1 percent.
"Another horrible set of labor market data for the eurozone, which bodes ill for consumer spending and growth prospects," said Howard Archer, chief European economist at IHS Global Insight.
The figures will add to the pressure on policymakers to get a grip of the debt crisis, which has hit investor confidence in the eurozone, forced five countries to seek external aid and pushed companies to cut their staff numbers.
The 17 countries that use the euro are struggling as economies across the region face deepening recessions. Spain and Italy, the two chief trouble spots, are threatened with a financial collapse that could tear the 13-year old currency union apart and rock the global economy.
Hopes have risen over the past week? at least in financial markets? that Europe is preparing new measures to handle the crisis. Last week, European Central Bank president Mario Draghi said the bank "is ready to do what it takes to preserve the euro. Believe me, it will be enough."
The ECB meets tomorrow to decide on its benchmark interest rate. It could use this opportunity to announce new measures.
Eurostat, the EU's statistics office, said 17.801 million people were out of work in the eurozone in June. That was 123,000 more than May, and is the highest level since the euro was formed in 1999. The increase was the 14th in a row and means that around 2.25 million people have lost their jobs since April 2011.
Despite the increase, the seasonally adjusted unemployment rate in June was unchanged at a record 11.2 percent. Without Germany's relatively low unemployment rate of 5.4 percent, the wider figures would be much worse.
Even then, the eurozone unemployment rate is nearly 3 percentage points higher than the US's 8.2 percent. Europe's unemployment rate for May had originally been estimated at 11.1 percent.
"Another horrible set of labor market data for the eurozone, which bodes ill for consumer spending and growth prospects," said Howard Archer, chief European economist at IHS Global Insight.
The figures will add to the pressure on policymakers to get a grip of the debt crisis, which has hit investor confidence in the eurozone, forced five countries to seek external aid and pushed companies to cut their staff numbers.
The 17 countries that use the euro are struggling as economies across the region face deepening recessions. Spain and Italy, the two chief trouble spots, are threatened with a financial collapse that could tear the 13-year old currency union apart and rock the global economy.
Hopes have risen over the past week? at least in financial markets? that Europe is preparing new measures to handle the crisis. Last week, European Central Bank president Mario Draghi said the bank "is ready to do what it takes to preserve the euro. Believe me, it will be enough."
The ECB meets tomorrow to decide on its benchmark interest rate. It could use this opportunity to announce new measures.
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