Eurozone: Unemployment rate drops unexpectedly in October
November 29, 2013
According to data released by Eurostat on 29 November, the number of unemployed fell by 61,000 people in October. The figure contrasted September's 41,000 increase (previously reported: plus 60,000). October's unemployment rate of 12.1% was slightly below the 12.2% recorded in September, which had represented a record-high for the region. In addition, October's reading was just below the 12.2% that market analysts had expected.
A country-based analysis, however, confirms that the divergence in labor market developments persists between the core European nations and the peripheral economies. Greece (27.3%, August data), Spain (26.7%) and Cyprus (17.0%) were the Euro area members with the highest unemployment rates. At the other end of the spectrum, Austria (4.8%), Germany (5.2%) and Luxembourg (5.9%) recorded the lowest unemployment rates. Among the remaining major economies, Italy had the highest jobless rate with a record-high of 12.5%, followed by France (10.9%).
FocusEconomics Consensus Forecast panelists expect the unemployment rate to average 12.1% in 2013, which is unchanged from last month's forecast. For 2014, the panel also expects the unemployment rate to average 12.1%.
Author: Armando Ciccarelli, Head of Data Solutions