Eurozone: No change in unemployment rate despite second consecutive drop in number of unemployed
August 30, 2013
According to data released by Eurostat on 30 August, the number of unemployed fell by 15,000 people in July. The figure followed June's 35,000 drop and marked the second consecutive reduction in the number of unemployed. Despite the decrease, the unemployment rate was stable at 12.1%, in line with market expectations. July's figure marks a record high for the common currency area.
A country-based analysis confirms that the divergence in labour market developments between the core European nations and the peripheral economies persists. Greece (27.6%, data from May), Spain (26.3%) and Portugal (16.5%) were the Euro area members with the highest unemployment rates in July. At the other end of the spectrum, Austria (4.8%), Germany (5.3%) and Luxembourg (5.7%) recorded the lowest unemployment rates. Among the remaining major economies, Italy had the highest jobless rate (12.0%), followed by France (11.0%).
FocusEconomics Consensus Forecast panellists expect the unemployment rate to average 12.0% in 2013, which is down 0.2 percentage points from last month's forecast. For 2014, the panel expects the unemployment rate to average 12.0%.
Author: Armando Ciccarelli, Head of Data Solutions