| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Rate | 6.5% | 6.4% | 6.5% | 6.4% |
Highlights
The Eurozone labour market was stronger than expected in June. A 62,000 drop in joblessness followed a steeper revised 66,000 decline in May to reduce the number of people out of work to 10.814 million. This put the unemployment rate at 6.4 percent, unchanged from its downwardly amended level in May but a tick short of the market consensus and matching the record low.
Regionally, the national rate was flat in France (7.1 percent) and Germany (3.0 percent) but down 0.2 percentage points in Spain (11.7 percent) and 0.1 percentage point in Italy (7.4 percent).
Today's update shows that the Eurozone labour market as a whole remains very tight. This will not be wasted on the ECB which will see the data as another warning signal about possible wage threats to inflation. The Eurozone ECDI now stands at 1, indicating overall economic activity is moving in line with market expectations. However, at minus 13, ECDI-P remains in negative surprise territory and shows that the real economy continues to underperform.
Regionally, the national rate was flat in France (7.1 percent) and Germany (3.0 percent) but down 0.2 percentage points in Spain (11.7 percent) and 0.1 percentage point in Italy (7.4 percent).
Today's update shows that the Eurozone labour market as a whole remains very tight. This will not be wasted on the ECB which will see the data as another warning signal about possible wage threats to inflation. The Eurozone ECDI now stands at 1, indicating overall economic activity is moving in line with market expectations. However, at minus 13, ECDI-P remains in negative surprise territory and shows that the real economy continues to underperform.
Market Consensus Before Announcement
Consensus for June's unemployment rate is no change at 6.5 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.
