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Euro zone jobless rate remains at 10pc

European unemployment held at the highest in more than 12 years in August as a cooling recovery prompted companies to keep their hiring plans on hold.

The jobless rate remained at 10.1pc after the July figure was revised from 10pc, the European Union statistics office in Luxembourg said in an emailed statement today. That’s the highest since June 1998.

Europe’s export-led recovery is faltering as governments from Portugal to Ireland step up efforts to push down their budget deficits just as the global economy cools.

Growth in Europe’s manufacturing industry weakened in September and European Central Bank President Jean-Claude Trichet said yesterday in Brussels that there’s a need for “caution.”

Some 15.9 million people within the 16-nation euro region were unemployed in August, down 20,000 from the previous month.

In the 27-nation EU, unemployment held at 9.6pc in August. At 20.5pc, Spain had the highest jobless rate in the EU and Austria the lowest at 4.3pc.