Euro Zone Unemployment Reaches 14-Year High in December
Among the 17 countries within the euro zone, the seasonally-adjusted unemployment level rose to 10.4 percent in December, topping a level which Europe hasn’t experienced since June of 1998.
Data Tuesday showed November’s unemployment rate was officially revised higher. Another 20,000 people throughout the euro zone lost their jobs in November, bringing the total to around 16.5 million people. Much of the revision can be attributed to Spanish and Greek rates which are driving the unemployment rate higher as 23 percent and 20 percent, respectively, of their workforce is unemployed.
Northern European countries continue to be the outlier in the region as Austria’s jobless rate fell to 4.1 percent in December and Germany’s January rate looks to decline to 6.7 percent. This has some speculating Germany may be less willing to offer the substantial help which is needed as its economy shows signs of life.
Throughout the EU's 27 nations, the jobless rate has risen from 7.1 percent in 2008 to 9.9 percent in December of 2011.
The economist consensus assumes rates will continue to climb as no signs of a reversal are present in the near- or long-term outlook. Some analysts believe the rate could climb as high as 11 percent for the entire European Union.
Despite the news, European markets are trading higher Tuesday. The FTSE is up nearly 0.9 percent while the DAX is up 1.3 percent.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
Data Tuesday showed November’s unemployment rate was officially revised higher. Another 20,000 people throughout the euro zone lost their jobs in November, bringing the total to around 16.5 million people. Much of the revision can be attributed to Spanish and Greek rates which are driving the unemployment rate higher as 23 percent and 20 percent, respectively, of their workforce is unemployed.
Northern European countries continue to be the outlier in the region as Austria’s jobless rate fell to 4.1 percent in December and Germany’s January rate looks to decline to 6.7 percent. This has some speculating Germany may be less willing to offer the substantial help which is needed as its economy shows signs of life.
Throughout the EU's 27 nations, the jobless rate has risen from 7.1 percent in 2008 to 9.9 percent in December of 2011.
The economist consensus assumes rates will continue to climb as no signs of a reversal are present in the near- or long-term outlook. Some analysts believe the rate could climb as high as 11 percent for the entire European Union.
Despite the news, European markets are trading higher Tuesday. The FTSE is up nearly 0.9 percent while the DAX is up 1.3 percent.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Savient Pharma (SVNT) Moves Higher with Volatility; Bumps Up Against Key Resistance Point
- Facebook (FB) Short Interest Nears Double-Digit Levels
- Brawl in the Corn Pits
Create E-mail Alert Related Categories
Economic Data, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
