Euro Area: Unemployment rate drops to record low in July
The unemployment rate dropped to a record low of 6.6% in July from 6.7% in June.
Looking at countries, eight economies saw their unemployment rates decline in July, including France and Italy. Meanwhile, six economies saw their unemployment rates increase, including the Netherlands, while five economies saw their unemployment rates stable, including Germany and Spain.
Disparities in the labor market among core and periphery countries persist. Spain (12.6%) and Greece (11.4%) are the economies with the highest unemployment rates. At the other end of the spectrum, Germany and Malta (2.9%) have the lowest unemployment rates.
Commenting on the release, Bert Colijn, senior economist at ING, stated:
“The eurozone labor market remains historically tight despite a rapidly slowing economy. While the strong labor market increases the risk of rapid wage growth fueling inflation further, there is no evidence of that so far.”