Eurozone: Unemployment rate drops for first time in five months
June 3, 2014
According to data released by Eurostat on 3 June, the number of unemployed fell by 76,000 people in April. The drop followed the 31,000 decrease that was recorded in March. As a result, the unemployment rate inched down from 11.8% in March to 11.7% in April. The figure marked the first drop in the unemployment rate in five months and surprised market analysts who expected the unemployment rate to remain stable at 11.8%. Despite the fact that the unemployment rate is now hovering at the lowest value in 17 months, it is still very close to the region’s all-time record high of 12.0%.
Divergences in labor market developments between the core European nations and the peripheral economies persist. Greece (26.5%, February data), Spain (25.1%) and Cyprus (16.4%) were the Euro area members with the highest unemployment rates. At the other end of the spectrum, Austria (4.9%), Germany (5.2%) and Luxembourg (6.1%) recorded the lowest unemployment rates. Among the remaining major economies, Italy had the highest jobless rate with 12.6%, followed by France at 10.4%.
Author: Armando Ciccarelli, Head of Data Solutions