EMU: Unemployment Rate

Wed Jan 07 04:00:00 CST 2015

Consensus Actual Previous
Level 11.5% 11.5% 11.5%

Unemployment rose 34,000 on the month to 18.394 million in November. However the increase was small enough to leave the jobless rate unchanged at 11.5 percent, as expected and its fourth consecutive month at this level.

Amongst the larger countries national rates rose 0.1 percentage points to a near-record 10.3 percent in France and to a new high of 13.4 percent in Italy. Germany was unchanged at 5.0 percent and Spain edged another tick lower to 23.9 percent, almost 2 percentage points below its reading in November 2013. Bottom of the jobless ladder was Austria (4.9 percent) while Greece (25.7 percent in September) remained at the top. The largest monthly change was in Lithuania, down 0.5 percentage points at 9.4 percent, which joined the single currency at the start of 2015.

Overall youth unemployment posted a 23.7 percent rate, just 0.2 percentage points short of its year ago reading.

The sluggishness of the aggregate labour market is consistent with what looks likely to have been another period of near-zero Eurozone growth last quarter.

The unemployment rate measures the number of unemployed as a percentage of the labor force.

Unemployment data are closely monitored by the financial markets. These data give a comprehensive report on the state of the economy and its future direction. A rising unemployment rate can be a warning sign of hard times while a low rate can be a warning of inflation as wages are bid up to attract labor.

Unemployment data are expressed in both a numerical value and as a percentage of the labor force. Generally, the definition of those unemployed follows that of the International Labour Organisation (ILO). It states that an unemployed person is one between the ages of 15 to 74 years of age who was not employed during the reference week, had actively sought work during the past four weeks and was ready to begin working immediately or within two weeks. The unemployment rate is the percentage of unemployed persons over the total number of active persons in the labor market. Active persons are those who are either employed or unemployed.

Eurostat provides an unemployment rate for each EU country as well as for the EMU and EU as a whole. It should be noted that the unemployment rate for a country will frequently differ with that reported by the national statistics agency. That is because of the varying interpretations of the ILO definition by member states and Eurostat.