News World News

Wednesday 17 September 2014

Eurozone jobless rate stays at peak

Published 31/10/2013 | 11:16

  • Share
Eurozone unemployment remains at a record high casting doubt on the strength of the recovery.

The unemployment rate in the 17-nation eurozone remained at a record high of 12.2% in September as the bloc's recent recovery failed to generate new jobs, official data shows.

  • Share
  • Go To

The number of unemployed rose by 60,000 to 19.45 million, while the jobless rate for those aged under 25 edged up to 24.1% from 24% in August, according to Eurostat, the European Union's statistics agency.

The August jobless rate was revised up from 12%. Analysts had widely expected the rate to remain at that level in September, so the new figures show Europe's recovery is still too tepid.

"The latest figures put a dent in hopes that the labour market may have reached a turning point," said analyst Ben May of Capital Economic.

The unemployment rate for the wider 28-nation European Union, in turn, remained unchanged on the month at 11%, according to Eurostat.

Youth unemployment rates are lowest in Germany and Austria, with 7.7% and 8.7%, and highest in Europe's southern economies, which have been hit hard by the debt crisis and government austerity measures. They were around 57% in Greece and 56% in Spain.

The overall unemployment rate showed similar disparities. Germany and Austria had low rates of 5%. By contrast, joblessness was 26.6% in Spain. In Greece, where the latest figures available were for July - it stood at 27.6%.

The eurozone's economy grew by 0.3% in the second quarter compared with the previous three-month period, bringing it out of a recession that saw six straight quarterly declines. But the recovery is expected to be slow.

The European Central Bank's benchmark interest rate stands at a record-low 0.5% and appears likely to stay flat amid a slow recovery and an inflation rate well below its targeted ceiling of 2%, analysts say.

The eurozone's annual inflation rate dropped to 0.7% in October from 1.1% a month earlier, Eurostat said.

AP

Press Association

Read More

Editors Choice

Also in World News