EMU: Unemployment Rate

Thu Mar 01 04:00:00 CST 2018

Consensus Actual Previous Revised
Level 8.6% 8.6% 8.7% 8.6%

The Eurozone labour market made further, limited, progress at the start of the year. Joblessness across the region fell a relatively mild 10,000 following a smaller revised, but still substantial, 122,000 decline in December. The unemployment rate was 8.6 percent, unchanged from December's downwardly revised mark and in line with market expectations.

Amongst the larger four member states, national jobless rates were steady in France (9.0 percent) and Germany (3.6 percent) but dipped a tick in Spain (16.3 percent) and, ominously, rose 0.2 percentage points in Italy (11.1 percent). Malta (3.5 percent) was bottom of the unemployment ladder with Greece (20.9 percent in November) still firmly at the top.

There was better news on youth joblessness where a 19,000 drop reduced the rate by a couple of ticks to 17.7 percent, a 2.2 percentage point decrease versus a year ago.

The ongoing improvement in the labour market continues to underpin high levels of Eurozone consumer confidence. However, so far, historically bullish morale seems to have provided only a limited boost to household spending.

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.