| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Rate | 6.6% | 6.7% | 6.6% | 6.7% |
Highlights
The Eurozone labour market lost some further ground in January. Following a downwardly revised 3,000 increase in December, joblessness rose 40,000 to 11.288 million. The rise was too small to lift the headline unemployment rate but, at 6.7 percent, it matched December's upwardly amended level and was a tick above the market consensus. It now stands 0.1 percentage point above last October's record low.
Regionally, the steady overall rate masked a 0.1 percentage point dip to 7.1 percent in France and a 0.1 percentage point increase to 7.9 percent in Italy. Both Germany (3.0 percent) and Spain (13.0 percent) were unchanged.
The January data leave joblessness rising for two consecutive months but not by much, particularly in the context of possible revisions. In any event, even if the labour market is loosening, it remains very tight and so a potential threat to inflation. Today's data put the Eurozone's ECDI at 8, indicating very mild overall economic outperformance, but the ECDI-P at minus 13, signalling that the real economy is falling slightly short of market expectations.
Regionally, the steady overall rate masked a 0.1 percentage point dip to 7.1 percent in France and a 0.1 percentage point increase to 7.9 percent in Italy. Both Germany (3.0 percent) and Spain (13.0 percent) were unchanged.
The January data leave joblessness rising for two consecutive months but not by much, particularly in the context of possible revisions. In any event, even if the labour market is loosening, it remains very tight and so a potential threat to inflation. Today's data put the Eurozone's ECDI at 8, indicating very mild overall economic outperformance, but the ECDI-P at minus 13, signalling that the real economy is falling slightly short of market expectations.
Market Consensus Before Announcement
Consensus for January's unemployment rate is no change at 6.6 percent.
Definition
The unemployment rate measures the number of unemployed as a percentage of the labor force.
Description
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.
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.
