Euro Area Unemployment September 2020

Euro Area: Unemployment rate stable in September

October 30, 2020

Labor market conditions in the common currency block worsened again in September, although data released by Eurostat continues to show just a small portion of the deterioration. The number of unemployed people increased by 75,000, while the unemployment rate was stable at August’s 8.3% in September.

Short-time work schemes involving a massive portion of the labor force across the Eurozone has prevented a jump in the unemployment rate so far. Moreover, discouraged people abandoning the active population are further contributing to contained jobless numbers.

That, said, looking at the countries with data available, 7 economies saw their unemployment rate increase in September, including Austria and France. Meanwhile, 8 countries saw their unemployment rate falling, including Italy and Spain. In Germany the unemployment rate was unchanged from August.

Disparities in the labor market among core and periphery countries persist. Greece is the economy in the Eurozone with the highest unemployment rate (16.8%, data refers to July), closely followed by Spain (16.5%). At the other end of the spectrum, Malta (4.0%), the Netherlands (4.4%) and Germany (4.5%) have the lowest unemployment rates.

FocusEconomics Consensus Forecast panelists expect the unemployment rate to average 9.3% in 2021, which is unchanged from last month’s forecast. For 2022, the panel expects the unemployment rate to average 8.3%.

Author: Massimo Bassetti, Senior Economist

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Euro Area Unemployment Chart

Euro Area Unemployment September 20 20

Note: Unemployment, % of active population. Data for Greece refers to April and Estonia refers to May.
Source: Brazil Institute of Geography and Statistics (IBGE) and FocusEconomics calculations.

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