Unemployment in the Eurozone hits a new all-time low
The euro zone unemployment rate continued to decline in October and reached a new all-time low by marking 6.5%, one tenth less than in Septemberaccording to data published by the European statistics institute Eurostat, based in Luxembourg.
Despite a strong inflation rate -which moderated by 10% in November-, the increase in interest rates by the European Central Bank (ECB) and projections of a probable recession during the next boreal winter at the beginning of 2023, the market Labor continues to remain solid in the monetary bloc.
As a reference, a year ago, in October 2021, the unemployment figure reached 7.3%, after having reached 8.5% at the worst moment of the coronavirus crisis in September 2020.
The data is even better than that registered before the pandemic since, in February 2020, the index marked 7.4%.
This data includes only the 19 countries of the European Union (EU) that adopted the euro as their currency (Eurozone).
If the 27 countries of the block are counted, the figure is even more positive, registering 6%, one tenth less than a month ago, and also the lowest since the statistical series began.
Thus, 10.87 million men and women are currently looking for a job in the Eurozonea figure that amounts to 12.95 million throughout the EU.
The data disaggregated by country present very dissimilar realities with a rate that finds a minimum of 2.1% in the Czech Republic and, at the other extreme, maximums of 12.5% and 11.6% in Spain and Greece, respectively, the only two States with double-digit rates.
Regarding the main economies in the area, Germany has unemployment of 3% (unchanged compared to September) while France registered 7.1% (unchanged) and Italy 7.8% (-0.1 points).
As in other countries in the world, the age group most affected by unemployment are young people, since the average figure for people under 25 years of age, both in the Eurozone and in the EU, reaches 15.0% -barely two tenths less than a year ago-, with countries like Spain, Italy and Portugal with figures reaching 32.3%, 23.9% and 17.6%, respectively.
The good employment data contrasts with the numbers marked by certain sectors of the economy as is the case of the manufacturing industry, impacted by energy costs and inflation.
The Purchasing Managers’ Indices (PMI), published today by the S&P Global rating agency, showed a contraction -for the fifth consecutive month- in the manufacturing industrial sector in November, despite the fact that it moderated compared to the previous months.
“Production expectations improved based on improvements in production chains and in the energy market, the latter due to a fall with warmer than usual weather,” said Chris Williamson, an economist at S&P, who now expects the fall next winter it will not be as harsh as projected.
Although, he warned, “confidence continues to be at one of the worst levels seen in the last decade.”
In the same way, he pointed out that production in the coming months will depend, to a large extent, on the harshness of the climate in the coming months and its pressure on the energy system.
