Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

France's top consumer group sues Internet giants

Read more

WEB NEWS

Web users pay tribute to South Korea ferry victims

Read more

AFRICA NEWS

A landslide victory for the 'invisible candidate' in Algeria's Presidential polls

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014 (part 2)

Read more

MEDIAWATCH

Presidential adviser resigns over "shoe-shine scandal"

Read more

#THE 51%

Breaking stereotypes

Read more

#TECH 24

Galaxy S5 v. HTC One (M8): Which is the right one for you?

Read more

FRANCE IN FOCUS

New PM Manuel Valls outlines priorities

Read more

  • Why Syria’s cash-strapped jihadists let hostages go

    Read more

  • Ukraine rebels call for Russian troops after deadly clash

    Read more

  • The Great War's unsung four-legged heroes

    Read more

  • UK’s Hamilton cruises to victory at Chinese Grand Prix

    Read more

  • Divers begin pulling bodies from sunken South Korean ferry

    Read more

  • Freed French journalists arrive home after Syria ordeal

    Read more

  • Syria’s Assad visits recaptured Christian town at Easter

    Read more

  • In pictures: French kite festival takes flight

    Read more

  • Le Pen’s National Front fail to woo Britain’s Eurosceptics

    Read more

  • PSG clinch fourth League Cup title after beating Lyon

    Read more

  • Militants kill Algerian soldiers in deadly ambush

    Read more

  • Scores killed in South Sudan cattle raid

    Read more

  • VIDEO: Anti-Semitic leaflets in Eastern Ukraine condemned

    Read more

  • In pictures: Good Friday celebrated across the globe

    Read more

  • Bouteflika, the ghost president

    Read more

  • Does Valls’ upcoming Vatican trip violate French secularism?

    Read more

  • Ukraine separatists say ‘not bound’ by Geneva deal

    Read more

  • Abel Ferrara’s hotly awaited DSK film to premiere on web

    Read more

  • Obama signs bill to block controversial Iran diplomat from UN post

    Read more

  • Astronomers discover Earth-like planet that could support life

    Read more

  • In pictures: Iranian woman pardons son’s killer at the gallows

    Read more

Europe

Eurozone unemployment hits record high

©

Text by News Wires

Latest update : 2012-07-02

Unemployment in the eurozone hit a record high in May, the EU's statistics office said Monday, rising to 11.1 percent from 11 percent in April. The announcement puts further pressure on the bloc's plans to create growth and cut government debt.

AP - Unemployment in the 17-country euro currency bloc hit another record in May as the continent teetered on the edge of recession because of its crippling financial crisis, official figures showed Monday.

Eurostat, the EU’s statistics office, said unemployment rose to 11.1 percent in May from 11 percent the previous month. May’s rate was the highest since the euro was launched in 1999 and adds further urgency to the eurozone countries’ plan to create economic growth and cut excessive government debt.

At a summit last Friday, eurozone leaders agreed a set of short- and long-term measures to shore up the euro and unveiled a limited economic growth package. Markets have responded positively with a stock market rally which, if sustained, should help buoy economic confidence in the eurozone - a key step to easing the crisis.

May’s unemployment rate compares badly with an unemployment rate of 8.2 percent in the United States and only 4.4 percent in Japan, and is expected to rise further in the coming months as the eurozone economy teeters on the edge of recession.

“With the eurozone likely having suffered appreciable GDP contraction in the second quarter and in grave danger of contracting again in the third, and with eurozone business confidence generally low and fragile, the likelihood is that the eurozone unemployment rate will move significantly higher over the coming months,” said Howard Archer, chief European economist at IHS Global Insight.

In total, 17.6 million people were out of work in the eurozone in May, 1.8 million higher than a year earlier.

Unemployment has been edging higher for over a year as concerns over the debt crisis and the future of the euro currency have weighed on economic activity. Businesses have been cutting jobs or delaying hiring as confidence in the economy waned, while many governments have pursued austerity programs, including big job reductions in the public sector.

There are huge disparities across the eurozone, however.

The labor markets of those countries at the front line of the debt crisis, such as Greece and Spain, are suffering most due to their governments’ stringent austerity measures and deep recessions. The highest unemployment rate across the eurozone was recorded in Spain, where 24.6 percent of people were out of work in May. Even more dramatically, 52.1 percent of the country’s youth were unemployed.

Other countries in the eurozone, particularly those in the north, are faring better.

Germany’s unemployment rate stood at only 5.6 percent. However, a raft of economic indicators in recent weeks have shown that Europe’s biggest economy is not immune to the problems in the rest of the region. Germany’s exports to other countries in the eurozone are under pressure and business confidence is waning.

Across the wider 27-country European Union, which includes non-euro countries such as Britain and Poland, unemployment edged up to 10.3 percent in May from 10.2 percent the month before.

Date created : 2012-07-02

  • FRANCE

    Hollande’s uphill battle to stave off redundancies

    Read more

  • ECONOMY

    Eurozone unemployment jumps to 15-year high

    Read more

  • SPAIN

    Job losses drive Spain's unemployment to record high

    Read more

Comments

COMMENT(S)